MUMBAI: In a move aimed at boosting

competition

,

RBI

has ordered card issuers to allow customers to choose from multiple networks like

Visa

,

Mastercard

and

RuPay

. It has also asked banks to stop entering into exclusive agreements with card networks. The move is positive for

NPCI

's RuPay cards because of their UPI integration. However, most banks have flagship card products in partnership with either Visa or Mastercard.In 2022, RBI allowed cardholders to store their card details in UPI apps and make payments by scanning QR codes.

While the circular applies to credit card networks, only RuPay has received permission to integrate with UPI. The directive will be effective in six months. According to bankers, giving customers an option to choose

card network

will require major changes in IT systems. For most banks, the issue of cards is a straight process - the customer applies online, the bank approves the application, and the card is sent for printing.

"This in line with RBI's vision of bringing in credit card portability, offering customers the choice of a network. As a leading bank, we support this. As of today, we do work with all key networks - both international and RuPay. We offer a wide range of six credit cards on RuPay," said Ambuj Chandna, president (consumer assets), Kotak Mahindra Bank.The new circular means that customers will no longer be limited to a card network chosen by the issuer. Banks will have to provide existing cardholders with this option at the time of renewal. Issuers with fewer than 10 lakh active cards will be exempt from these requirements. Issuers with credit cards on their own network (like American Express) will also exempt from this circular.