Credit Card Portability: Credit card can be ported like mobile number, know the detail process here

Credit Card portability: Rules from 2023, October 1 credit card, debit card and prepaid card customers will be able to port their networks. The Reserve Bank of India (RBI) in its latest draft circular has put forward a proposal that will allow customers to change their debit prepaid or credit card networks as per their choice. In fact, till now the customers were not given the option to change the network of their card, but after this circular of RBI, this option will be given to the users, which will give them many facilities.

Credit Card Portability: Credit card can be ported like mobile number, know the detail process here

Credit card users are increasing very rapidly in India. With the expansion of banking services, the reach of credit cards is also increasing. But whether it is a credit card or a debit card, you get a fixed network in both the cards. Depending on the network, that card is either Visa card, Mastercard, Diners club or RuPay card.

When you go to get a debit card or credit card, you as a customer are not given the option to choose the network. You have to use the card of the same network as the bank provides you. As a customer you have no choice if you are not interested in this card due to some reason. But now Credit Card portability rule 2023: October 1 credit card, debit card and prepaid card customers will be able to port their networks.

Credit Card Portability: Now you will get this facility.

For this problem of the customers, the Reserve Bank of India (RBI) has come forward with a proposal in its latest circular which allows the customers to change their debit, prepaid or credit card network as per their willing like mobile network port facility.

According to the RBI circular, from October 1, credit card, debit card and prepaid card customers will be able to port their network. For example, card users will be able to port from Master card to Visa card, Visa card to Rupay or any other network or vice versa as per their willing. It will be exactly like the same when you change your mobile SIM card from one operator to another. The Reserve Bank has issued a draft circular regarding this. If this draft becomes a rule, then banks will not be able to hold you a credit card of any network on their own. Banks will have to ask customers which network’s credit card they want.

Credit Card Portability: Why did this option come?

Now Question come to mind, why RBI (Reserve Bank of India) come with this Option?

In fact, users get different offers, benefits on each card network. Offers or benefit very according to network. In the current situation, even if customers want, they cannot choose the card network as per their choice, because their network is decided by the bank. but after this decision of RBI, customers will be able to change the card network according to their benefit.

What did RBI say in its draft proposal?

The central bank has found that it is “necessary and expedient” to do so in the payment system and in public interest to provide more choice to customers. For this, RBI has proposed that:

  1. Card issuers shall not enter into any arrangement or agreement with the card network that prevents them from availing the services of other card networks.
  2. Card issuers will issue cards on more than one card network.
  3. Card issuers shall provide an option to their eligible customers to choose any one among the multiple card networks. This option may be exercised by customers either at the time of issue or at any subsequent time.

Does Credit card Portability facility will be available on the old card?

Now the question arises that if someone already has a credit card and desired to change its network, whether it is possible? Yes, The Reserve Bank has also made a provision for this in the draft. Every credit card has come with a validity, it can be 1 year, 2 years, 4 years etc. For this you need to see the expiry date of your card. After that when the card has to be renewed. Old customers will ask to choose network option to while renewing.

Credit Card Portability: How customers will be benefited from?

The main benefit from this provision of the Reserve Bank is going to be to the customers. Various networks offer different features on their cards. Some have less processing fees or Maintenance fee, while others give more rewards or offers. Likely, cashback and usage rewards are different for each network. On getting the facility to swap the network, the user will be able to choose the appropriate network as per their wish.

When can you port your card network?

The card network portability option will be included in existing agreements or at the time of renewal or in fresh agreements executed from the date of the circular. The RBI said that card issuers and card networks shall ensure to adhere to the above requirements in:

  1. Existing agreements at the time of amendment or renewal thereof, and
  2. Fresh agreements executed from the date of this circular.

Credit Card Portability: Can Indian rupees be stronger by this card portability.

With this, indigenous network Rupay can get a big benefit. The Reserve Bank has already introduced the UPI facility for credit cards means you can do purchase from credit card by scanning QR code. But currently this facility is not for everyone. Only Rupay card users can use their credit cards through UPI. In that situation, a large number of users can choose for Rupay after getting the facility to change the network.

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