How Rbi Is Upping The Scrutiny On Credit Cards - Aryan Digital

How rbi is upping the scrutiny on credit card

Focus on cobranded cards rbi has increased scrutiny on cobranded credit cards a segment experiencing rapid growth

This aims to prevent unauthorized entry into the credit card industry and ensure stricter regulations why rbi has increased its scrutiny on cobranded credit cards

Data sharing concerns the regulator has expressed concerns about data sharing practices between cobranding partners this highlights the importance of ensuring customer privacy and data protection

Restriction on exclusive network agreements through a circular issued in march 2024 rbi prohibited banks from entering into exclusive agreements with specific card networks visa mastercard etc

This move promotes increased competition and provides cardholders with greater choice regarding network options

Curbing business transactions rbi restricted business and commercial payments made through credit cards this aims to address concerns about high transaction fees associated with such payments

Billing cycle flexibility rbi recently amended its regulations to provide cardholders with more control over their billing cycle

This includes the ability to choose their preferred billing start and end dates offering greater convenience and potentially improving financial management

These measures indicate a multipronged approach by rbi to

Safeguard customer interests ensuring responsible credit card issuance practices and protecting consumer data

Promote a fair and competitive market encouraging competition among card issuers and networks

Address potential misuse curbing practices that might lead to excessive fees or irresponsible credit card usage