RBI introduces New Regulations for Credit and Debit Card Usage

The Reserve Bank of India (RBI) has recently announced changes to the rules governing credit and debit cards.

In an official circular, the central bank outlined the modifications, which also extend to prepaid cards.

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These alterations aim to enable the usage of cards across all networks, as opposed to specific networks.

Circular Issued by RBI to Facilitate Card Usage across Networks

RBI’s circular emphasizes the need for credit cards, debit cards, and prepaid cards to be universally accepted across networks.

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The circular also seeks public opinion on the matter, encouraging feedback from the stakeholders.

Simplifying Payments and Enhancing Accessibility

The decision to implement these changes stems from the desire to facilitate easy and seamless payments for cardholders at any merchant.

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Currently, card networks act as intermediaries between the merchant and the cardholder, providing the necessary infrastructure. These networks also charge fees for their services.

Streamlining Card Network Companies

Major credit card networks, including MasterCard, Visa, American Express, and Discover, play a crucial role in determining where card payments can be accepted. However, the availability of specific facilities varies among different card networks.

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This lack of universal acceptance poses challenges for merchants and limits the convenience of card usage.

Boosting the Rupay Card

With the proposed changes, one card that stands to benefit significantly is the Rupay card.


The RBI’s decision is expected to promote the adoption and usage of Rupay cards across the country.

While American Express and Discover offer comprehensive services, the Rupay card is not currently included in their networks.



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