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RBI Mandates Multi-Network Choice for Credit Cards

Current · Source: Reserve Bank of India · RBI/2023-24/131 · issued 06 Mar 2024 · ~2 min read

Quick answerRBI now requires card issuers to let eligible customers choose from multiple card networks at issuance and renewal, banning exclusive tie-ups. Small issuers with ≤10 lakh active cards are exempt. Effective from September 6, 2024.

The rule, in the simplest words

Banks must let customers pick from different card networks (like Visa, MasterCard, RuPay) when they get a new credit card or renew an old one.
Banks cannot sign deals that stop them from working with other card networks.
Small banks with 10 lakh (1 million) or fewer active credit cards don't have to offer the choice, but they still can't sign exclusive deals.
This rule starts on September 6, 2024, for new cards and renewals.

How it plays out — a real example

A credit & lending officer in Indore is issuing a new credit card to a customer. She shows the customer a screen with two network options: RuPay and Visa, and explains they can pick whichever they prefer. For an existing cardholder renewing next month, she notes the system will prompt the same choice at renewal.

What changed

RBI has directed that card issuers cannot enter agreements that restrict them from using other card networks. They must offer eligible customers a choice of multiple card networks at the time of card issuance, and for existing cardholders, at the next renewal. This applies to all authorised card networks including American Express, Diners Club, MasterCard, RuPay, and Visa.

What it means for you

Banks and non-bank issuers must renegotiate existing bilateral agreements with card networks to remove exclusivity clauses. This enhances customer choice and competition, potentially lowering costs for lenders. Small issuers with ≤10 lakh active cards are exempt from the choice mandate, but all must comply with the ban on restrictive agreements.

What you must do

Review all existing card network agreements and remove any exclusivity or restrictive clauses by the next amendment or renewal.
Update card issuance and renewal processes to offer eligible customers a choice of at least two card networks.
Ensure systems are ready to implement the multi-network choice option for new cards immediately and for renewals within six months (by September 6, 2024).
If your institution has ≤10 lakh active credit cards, confirm exemption eligibility but still comply with the ban on restrictive agreements.

Who it affects

All banks issuing credit cards, Non-bank credit card issuers, Authorised card networks (American Express, Diners Club, MasterCard, RuPay, Visa), Payment system providers and participants

❓ Common questions

Regulatory timeline

Stated effective date Effective from September 6, 2024
Decoded by BankPulse 2026-06-18 03:39 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Does this circular apply to debit cards or only credit cards?

The circular specifically addresses credit cards. It does not mention debit or prepaid cards, so the requirements apply only to credit card issuance.

Are small banks with fewer than 10 lakh credit cards exempt from everything?

No. They are exempt only from the requirement to offer a choice of multiple networks (para 3(b)). They must still comply with the ban on restrictive agreements that prevent using other card networks.

When must we start offering the multi-network choice to existing cardholders?

For existing cardholders, the option must be provided at the time of the next renewal. The overall mandate becomes effective six months from March 6, 2024, i.e., by September 6, 2024.

📜 Read the original circular — full text as issued by RBI

RBI/2023-24/131
CO.DPSS.POLC.No.S1133/02-14-003/2023-24
 March 06, 2024
 The Chairman / Managing Director / Chief Executive Officer
Authorised Payment System Providers / Participants (Banks and Non-banks)
 Madam / Dear Sir,
 Arrangements with Card Networks for issue of Credit Cards
 The authorised card networks tie-up with banks / non-banks for issuance of credit cards. The choice of network for a card issued to a customer is decided by the card issuer (bank / non-bank) and is linked to the arrangements that the card issuers have with card networks in terms of their bilateral agreements.
 2. On a review, it is observed that some arrangements existing between card networks and card issuers are not conducive to the availability of choice for customers.
 3. In exercise of the powers conferred under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007), the RBI being satisfied that it is necessary and expedient, in the interest of payment system and public interest, to do so, hereby, directs as under:
 Card issuers shall not enter into any arrangement or agreement with card networks that restrain them from availing the services of other card networks.
 Card issuers shall provide an option to their eligible customers to choose from multiple card networks at the time of issue.  For existing cardholders, this option may be provided at the time of the next renewal.
 For the purpose of these directions, the following definitions are used:
 Authorised card networks: American Express Banking Corp., Diners Club International Ltd., MasterCard Asia/ Pacific Pte. Ltd., National Payments Corporation of India–Rupay, and Visa Worldwide Pte. Limited. 4. Card issuers and card networks shall ensure adherence to the above requirements in:
 existing agreements at the time of amendment or renewal thereof, and
 fresh agreements executed.
 5. The directions at 3(b) above shall not be applicable to credit card issuers with number of active cards issued by them being 10 lakh or less in number.
 6. Card issuers who issue credit cards on their own authorised card network are excluded from the applicability of the circular.
 7. The directions at para 3(b) above shall be effective six months from the date of this circular.
 Yours faithfully,
 (Gunveer Singh)
Chief General Manager-in-Charge

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2023-24/131 · issued 06 Mar 2024. The plain-English explanation above is BankPulse’s own independent summary.

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Who does what — compliance checklist

💻 IT / Systems

Ensure systems are ready to implement the multi-network choice option for new cards immediately and for renewals within six months (by September 6, 2024).

📜 Compliance

Review all existing card network agreements and remove any exclusivity or restrictive clauses by the next amendment or renewal.
Update card issuance and renewal processes to offer eligible customers a choice of at least two card networks.
If your institution has ≤10 lakh active credit cards, confirm exemption eligibility but still comply with the ban on restrictive agreements.

Grouped from the action items above — a single circular may involve more than one team.

Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All banks issuing credit cards, Non-bank credit card issuers, Authorised card networks (American Express, Diners Club, MasterCard, RuPay, Visa), Payment system providers and participants), your first concrete step on “RBI Mandates Multi-Network Choice for Credit Cards” is: “Review all existing card network agreements and remove any exclusivity or restrictive clauses by the next amendment or renewal.” (RBI issued this 06 Mar 2024).

Circular: RBI/2023-24/131 -- RBI Mandates Multi-Network Choice for Credit Cards
Issued: 06 Mar 2024
Action required: Review all existing card network agreements and remove any exclusivity or restrictive clauses by the next amendment or renewal.
Action required: Update card issuance and renewal processes to offer eligible customers a choice of at least two card networks.
Action required: Ensure systems are ready to implement the multi-network choice option for new cards immediately and for renewals within six months (by September 6, 2024).
Action required: If your institution has ≤10 lakh active credit cards, confirm exemption eligibility but still comply with the ban on restrictive agreements.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________

Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12619&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.