1 min read.Updated: 01 Oct 2020, 05:24 AM IST Edited By Sangeeta Ojha
These measures will make debit, credit cards more secure and curb their misuse
Let's take a look at RBI's new guidelines for credit, debit cards with effect from today
In an attempt to make digital payments using debit cards and credit cards more secure, the Reserve Bank of India (RBI) has issued several new guidelines that will come into effect from today, 1 October 2020. Let's take a look at RBI's new guidelines for credit, debit cards with effect from today.
1)At the time of issue / re-issue, all debit, credit cards shall be enabled for use only at ATMs and Point of Sale (PoS) devices within India.
2)If customers want to use their debit, credit cards outside India, they would need to request their banks for the facility. Before the notification, most banks issued cards that, by default, could be used anywhere in the world.
3)For existing debit, credit cards, issuers may take a decision, based on their risk perception, whether to disable the card not present (domestic and international) transactions, card present (international) transactions and contactless transaction rights.
4) All banks, card issuing companies have been asked by RBI to disable online payment for all debit, credit cards that have never been used for online or for contactless transactions in India or abroad.
5) As per new rules, people will now be able to register for preferences such as opt-in or opt-out services, spend limits and other services for online transactions, international transactions and contactless transactions.
6) Users will have 24x7 access to switch ON/OFF or change all transaction limits via all available channels — mobile application / internet banking / ATMs / Interactive Voice Response (IVR).
7) Many banks have also been issuing cards based on near field communication (NFC) technology. A merchant doesn’t need to swipe such cards or insert them in the the point of sale terminal. These are also known as contactless cards. Card holders will also get the option to enable or disable the NFC feature also.