Reserve Bank of India has issued new guidelines to secure debit and credit cards. These changes will be effective from 1st October 2020.
RBI has issued new rules for debit and credit cards to improve the security and convenience of card transactions.
According to the new guidelines, card users will now be able to register preferences (opt-in or opt-out of services, spend limits, etc.) for international transactions, online transactions as well as contactless card transactions. Hence, debit and credit cards issued by banks will only be enabled for domestic transactions at ATMs and point of sale (PoS) terminals. Banks can deactivate current cards and reissue them based on risk perception. Note that, the RBI’s mandate does not include prepaid cards and gift cards.
RBI has asked all banks and other card-issuing companies to disable online payment services of all debit and credit cards that have never been used for online or contactless transactions both in India and internationally. If the cardholder wants to use the credit or debit card outside India, then they need to ask the bank to enable international transactions.
Cardholders will also have the ability to enable and disable the NFC (contactless) facility which currently has a limit of Rs 2,000 per day without a PIN. Cardholders will also be able to set a limit on various transactions. For instance, an individual who travels to Singapore can activate the global transaction mandate on the card and spend as per his/her needs and can deactivate the same once back in India. This will save both the customers and the bank’s time in setting up a global transaction mandate……..Read More>>