Amid rising cases of banking frauds, the Reserve Bank of India (RBI) has introduced several new measures to secure debit cards and credit cards. From March 16, all the new debit and credit cards issued by banks will only be enabled for domestic transactions at ATMs and point of sale (PoS) terminals. If the customer wants use the card for online transactions, the cardholder would need to approach the bank. The regulator has also issued a host of new regulations to curb the misuse.
All you need to know
1) All new debits and credit cards, including those which are reissued, can only be used for domestic transactions at ATMs and point of sale (PoS) terminals. "At the time of issue/re-issue, all cards (physical and virtual) shall be enabled for use only at contact based points of usage within India," RBI said.
2) Cardholders need to approach their bank to enable any other facilities including online transactions, international transactions and contactless transactions in their debit and credit cards. These services won't be available by default any more.
3) If the customer wants to use the card outside India, they need to ask the bank to enable international transactions. Till now, most of the banks issue cards that, by default, can be used anywhere in the world.
4) Banks will have the right to deactivate current cards and reissue them based on risk perception.
5) If any individual has not used their card for online transaction, international transactions and contactless transactions before, the bank will have an option to disable their card.
6) Cardholders will have the option to switch on and switch off their card or any particular facility like ATM transaction, online transactions available in the debit or credit card.
7) Customers can also get the facility to set their transaction limits, said RBI.
8) The regulator has also asked banks to provide 24x7 mobile applications, net banking options to modify the limits and enable and disable services. Bank branches and ATMs will also have these options.
9) The new rules will not be applicable for prepaid gift cards and those cards used at mass transit system, the central bank added.
10) This new rule for debit and credit cards will come into effect from March 16.