RBI’s New Directive Empowers Customers in Credit Card Selection
Friends, in this article we will discuss a very big update from the Reserve Bank of India, that is, this new update that has come from the Reserve Bank of India. From this, you can assume that there is a credit card industry in India.
Boost for Indigenous Rupee Variance in Credit Cards
Now the maximum benefit is going to be for the customer, that is, what used to happen till now, whenever we take a credit card, suppose we took it from one bank, then you must have seen many times here below, this MasterCard. Many times, you must have seen the Visa logo on some credit cards. You must have seen the rupee logo on some credit cards.
Understanding Credit Card Networks: Visa, MasterCard, and Rupee
So, what would happen if it is a bank? Let’s say it is ADAC. This is HDFC’s Millennium Credit Card. If this is below, it is coming with a Master Card. So, you did not have the choice that user want the Millennium Credit Card, but user want this with the rupee variant. You did not have this choice, but now the Reserve Bank of India has said that now your Pass is the choice.
Merchants to Benefit from UPI-Linked Payments
Suppose CCI was created by the National Payment Corporation of India in 2012; that is, it is indigenous; it is Indian. If we talk about Visa and Master Card, then both of them are American companies. Okay, so the first thing is that one Swadeshi thing, i.e., the Indian thing, the rupee, is going to get a huge boost. Secondly, you are also going to benefit a lot by being a customer; that is, in a way, you should keep in mind that whatever the arbitrariness of the banks, it was not done by the Reserve Bank of India.
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Advantages and Disadvantages of RuPay Credit Cards
Now two questions will come to your mind: first, what is this MasterCard, this Visa, this money? Okay, yes, the second question will come. Let’s say hdfcergo.com, and let’s say here it has these uses of Visa. Suppose the credit card he has is a Visa one; this customer went to a shop; the shopkeeper had an account; suppose the shopkeeper had a pose machine, inside which this credit card will be inserted; it will be swiped out; and the transaction will be done with you, i.e., his credit.
RBI’s Initiative: Empowering Customers to Choose
If money is deducted from the card, then let’s assume that this is a pose machine, and the person next to it says no problem. I have SDFC’s pose machine; bring your credit card and insert it in it, and the money is deducted, but have you ever thought about this?
No Impact on Banks with Less Than 10 Lakh Credit Cards
When its account is the shopkeeper’s account, if we are taking the example of the hdfcfund.com credit card or even a debit card, then ADAC cannot know whether Visa, MasterCard, or Rupee come into play in it.
Exemption for Banks with Proprietary Networks
Well, by the way, American Express and what else do they say? These networks in between are fine, but the main ones in our country are Visa, Master Card, or Rupees.
Flexibility in Switching Credit Card Variants
Okay, yes, now what will happen is the shopkeeper’s POS machine, i.e., ADFC. If IIC’s credit card is inserted in the POS machine, it will send it to Visa, MasterCard, or whatever network this ICICI Bank person is roaming with. Okay, the information has gone to him.
Previous Reserve Bank of India Initiatives for Improved Credit Scores
To whom will this information be sent? ICICI will send it to the bank, i.e., information from ADAC. To whom did the ADAC sent go into the bank’s account, i.e., if it went into the account of this merchant or this shopkeeper, then what was the benefit of it? In a way, it worked as a broker. In a way, in between, holding any Visa MasterCard or Whoever brought the money with this credit card is right; suppose it was brought with the help of Visa; in between, we write down the Visa here. So in a way, what work did it do? Why did it work as a broker because neither it gave nor IIC deducted the money and sent it to ADAC?
Okay, now let’s move ahead. Now there is one benefit, one thing that comes to the customer. What is the benefit to the customer, brother? Take the money, take a Visa, take a Master Card. First of all, what is this? Look, the user told you about Visa and Master. The cards are from American companies.
Benefits of RuPay Credit Cards and UPI-Linked Payments
Secondly, the rupee was created by the NPCI in 2012. Rupee is beneficial in every aspect because if you have a credit card with Rupee, let me tell you one thing. In today’s date in India, if I buy four credit cards, then you can ask me, tell me four credit cards, which is the best, and then I will say that one credit card is Rs. 5, you will get unlimited cashback; if you buy Amazon 2, one bank is Flipkart.com, you will get cashback of Rs. 5,000 in a month, anywhere online. You will get a cashback of Rs. 6.25 on every expenditure, one SBI credit card, and one BPCL credit card. If you get petrol filled at the Bharat Petroleum petrol pump, then, in my view, these four credit cards are the best credit cards to date.
Okay, now tell me one thing: one of my Amazon2s comes with Flipkart.com. Do you have a credit card? You insert this credit card into a cash machine. If it is with the shopkeeper, neither the shopkeeper nor the bank charges the MDR from the shopkeeper at Rs. 2. The merchant’s discount rate is fine. You must have seen the shopkeeper many times saying, “Brother, don’t give us the credit card.
Our bank deducts a lot of money. Suppose someone charges Rs. 1.” If you swipe a credit card for ₹ 1, then the merchant will have to pay ₹ to the bank, so in a way, what has become of the fees of their Visa and Master Card? But now that you have started linking the money with UPI, If yes, then you open your credit directly on your mobile, you do not have to pay Google3 to the merchant, and the merchant also remains happy, whereas Visa and Master cards cannot be linked to UPI, so you have to insert the card in the POS machine every time.
RBI’s Move Towards Customer Convenience
Now I wonder: what happens? What is the problem? According to the law, he is a merchant, that is, he is a shopkeeper; he is a customer. Here, he swipes the pose machine, and the merchant will already say that.
At 2, I will take it from you only, then give a credit card; otherwise, debit. Make payments by card. You must have seen many times around that if there is a small shop, then they do the same. If you go to a big mall, then it is a different matter. What I mean to say is that at some point, the merchant also gets worried that he has to go to the bank. Due to this, the demand for rupees has increased a lot.
Now some such credit cards have come into the market and are saying that even if you scan and pay through UPI, we will still give you a cashback of Rs 1.5, like if you pay with rupees, you will start getting cashback. The third thing is that, now that we are Indians, we ourselves would like to buy indigenous products only, so with this move, the demand for rupee credit cards is increasing very fast. It is going to increase. Okay, yes, these are some of the advantages of the rupee.
Disadvantages of RuPay Credit Cards
One disadvantage is that the rupee flows very well within India. Okay, but these Visa and Master cards are active internationally in more than 200 countries. So, if we look at one disadvantage of the RuPay Credit Card, if you use it internationally, then in that case it does not have the same level of services as Visa and Master Card. Okay, the rest of the things we have seen.
Flexibility in Credit Card Variant Change
Okay, one thing. And let me tell you this for extra knowledge: if we talk about debit cards, even within the debit card, if you have a debit card with rupees, then nothing is charged on MDR; he does not have to pay any charge to the shopkeeper, but if you have a Visa debit card and you go to a shop and say, swipe this debit card in the pose machine, then, in that case, the shopkeeper has to pay Rs. 0.9 on the debit card and also to the bank. Okay, so there are many benefits to rupees. All these things have happened. Okay, now let’s see the exact reason why this move was brought by the RBI. See what used to happen many times, like, for example, suppose it is III Bank. I am just taking an example, let me assume.
II Bank has tied up with Visa; now that it has tied up, all the credit cards they are issuing are with Visa. For example, I am telling you that all the credit cards they are issuing are with Visa. Are you worried? Suppose, like I told you, ICICI can also be linked with UPI, but with whom it is coming; if it is coming with Visa, then it is arbitrary on the part of the bank, and these network companies are all as Visa is your master.
The card has become the money; now it has become arbitrary for them and the banks. Suppose Visa has tied up with it, but the customer wishes that he had the money with him. In such a situation, he is not withdrawing it with the money, keeping this in mind.
RBI’s Move for Customer Choice
RBI has said that now the customer will be able to choose as per his wish whether he wants the credit card in rupees, Visa, or Master Card. Well, there is one more thing: if there is any bank that has less than 10 lakh credit cards till now, He has issued the date to date, so no changes will be made to it as of now; nothing will be said on it that the customer will not agree to the new credit card; his work will continue as it was going on, no matter how big or small.
Your banks are ICICI Access, HDAC, SBI, etc.; these big ones have distributed credit cards worth crores, so this change has come in every major bank. Okay, yes, one last point was left; where was it written? Where is the last point? Yes, one thing I have written is that if there is any bank that has its network, like American Express, which is also a bank, and American Express also provides this network service, then there is no one on top of it. Also, such a rule will not be applicable that American Express will have to give Visa or Master Card as per the wish of the customer because it is the same bank and its network is also the same, so this move will not have any impact on it due to RBI’s move, which is ok.
Flexibility in Credit Card Variant Change
And a very big thing: now someone will say that I have a Visa credit card. Okay, it means any credit card; it is in the Visa variant. Now how can I change it? I am already using Visa, so the RBI has approved this. It is said that whenever your renewal time will come or the time will come to renew the credit card, you will be given the option that now you get it changed in MasterCard or rupees, whichever you want, then it is a very good move even before this RBI He had also come out with four such rules in favor of the customer, due to which the civil score of the customer can increase very fast, i.e., you can say that it can go up to 750 plus or even 800, so he had come out with four such rules for the credit card. Before this, I had written to him.
