Network means that card is either Visa Card, Mastercard or RuPay Card. When you are given a debit card or credit card from the bank, then as a customer you are not given the option to choose the desired network. You have to use the same card of the network that the bank gives you.

RBI’s draft proposal on debit and credit cards

RBI said that it is observed that the existing arrangement between card networks and card issuers (banks and non-banks) does not give the option to the customers to change the network of their cards. But after this circular of RBI, this option will now be given to the users, which will benefit them a lot.

According to RBI’s draft proposal, card issuers shall not enter into any arrangement or agreement with a card network that prevents them from availing the services of other card networks. Card issuers will now have to issue cards on more than one card network. Issuers will provide their customers with an option to choose from a number of card networks. This option can be exercised by the customer at the time of card issuance or any time thereafter.

What is card network portability?

You all are aware of mobile number portability. When you are not happy with your telecom provider, then you port your mobile number with another service provider. The Reserve Bank of India is now going to start a similar facility in the case of credit and debit cards. Through card network portability, customers will be able to transfer their card account from one network to another.

Card network portability allows the cardholder to retain his existing card account, balance and credit history while switching to another payment network.

On this, the central bank has sought comments from the stakeholders on the draft circular till August 4. This draft is very beneficial for the customers, it provides them the right to decide and portability, but due to this banks may face operational challenges and increased cost.

The post New debit-credit card rules: Know how you will benefit from RBI’s proposal first appeared on Rightsofemployees.com.

The new rule will be applicable from October 1, Let us tell you that from October 1, there is going to be a big change in the rules related to the banking sector. RBI has also issued an order for this. The Reserve Bank has said that it is bringing Card-on-File Tokenization (CoF Card Tokenization) rules from 1st day.

Cardholders will get a lot of benefit

The Reserve Bank of India has informed that after the change in the tokenization system, cardholders will get more facilities and security. The payment experience of the cardholders will be greatly improved. According to the information given by the Reserve Bank, the purpose of the new rules is to make payment through credit and debit cards more secure than before.

For the past few days, there were many reports of fraud with credit-debit cards, but after the implementation of the new rule, customers will transact online, point of sale (POS) or on the app with debit or credit card.

All the details will be saved in the encrypted code. You will be able to change the card into a token, let us tell you that under the new token system, the entire data of debit and credit cards will be converted into ‘token’. This will keep your card information hidden in one device.

If any person can make a request on the token bank and convert the card into token. The cardholder will not have to pay any fee for tokenizing the card. If you convert your card into a token, then your card information can be saved in the token on any shopping website or e-commerce website.

The post Debit-Credit Card Rules: There will be a big change from October 1, check new rules immediately first appeared on Rightsofemployees.com.