Business News Now You Can Port Your Credit Card Like Mobile Number Know How It Works

Credit Card Portability: Credit card users are growing rapidly in India. With the expansion of banking services, the reach of credit cards is also increasing. Along with this, the rules related to credit cards are also changing. The Reserve Bank is now preparing to make a new change in this matter. After this change comes into effect, even in case of credit cards, customers will be able to port in the same way, which is currently available in case of mobile numbers.

Credit Card Network Portability

Mobile number portability i.e. MNP is no longer a new thing. MNP was started with the objective of providing better service to the customers. If you are not satisfied with your current service provider, you can easily port your mobile number. The Reserve Bank wants to do something similar in the case of credit cards. It’s called Credit Card Network Portability.

What is a credit card network?

Before proceeding, let us know what is this credit card network? If you also use credit cards, you must have seen the name of Master Card, Visa, RuPay, Diners Club etc. on your card. These are credit card networks. Banks connect with this network to issue credit cards. This network makes credit card transactions possible. In a way, they act like a bridge between different banks.

 

Reserve Bank Draft

The RBI says that customers should be given the facility to choose the credit card network of their choice. The Reserve Bank has issued a draft circular in this regard. If this draft becomes a rule, banks will not be able to hold any network credit card on your own. Banks have to ask customers which network credit card they want.

This facility will be available on old cards

Now the question is if someone already has a credit card and wants to change their network, is it possible? The Reserve Bank has also made a provision for this in the draft. Every credit card has a validity, which can be 1 year, 2 years, 4 years etc. For this you can see the expiry date of your card. After that the card has to be renewed. Old customers will get the option to change network while renewing.

Customers will benefit

The biggest advantage of this provision of the Reserve Bank is to get the customers. Different networks offer different features on their cards. Some have lower fees, while others offer higher rewards. Similarly, cashback and usage rewards are different for each network. With the facility to change the network, the user will be able to select the right network according to his usage.

There will also be a lottery of Rs

Along with this, indigenous network Rupay can get a big benefit from this. Reserve Bank has already introduced UPI facility for credit cards. However, this feature is not for everyone. Only RuPay card users can use their credit cards through UPI. In such a scenario, a large number of users can adopt Rupay once the network switching facility is available.