Fresh Guidelines Issued for Debit and Credit Cards from 1st October, 2020

RBI has recently issued fresh guidelines relating to the usage of debit and credit cards. The guidelines will serve, to better secure the privacy of these cards while making online payments. The guidelines will come into force from today that is the 1st of October, 2020.  

Further, let we get an idea about the new brought in changes related to debit and credit cards:  

1. Debit and Credit cards to be used only for ATM and Point of Sale devices within India during the time of issue/re-issue.  

2. The new update requires users to seek prior approval with banks for the usage of debit and credit cards outside of India.  

3. The disabling of debit and credit cards for present transactions, card-present transactions and contactless transaction rights will be based on the risk factor.  

4. Banks and card issuing companies shall disable credit and debit cards that are never used for online transactions in India and abroad.  

5. Registration by users now possible for opt-in or opt-out services, spend limits, and other services for online transactions, international transactions, and contactless transactions.  

6. 24/7 access will be provided for changing the transaction limits that are possible via all channels, including mobile applications, internet banking, ATMs, and Interactive Voice Response. Moreover, users will also have the option to switch ON/OFF the transaction limits.  

7. The new rule will let users decide whether they want to enable or disable the NFC feature. Cards based on NFC technology are known as contactless cards.  

8. Transaction limit will now be a new facility available for both debit and credit cardholders.  

9. Prepaid gifts cards and cards used at mass transit systems do not apply to the new rules.  

10. The rules have been issued as part of Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).  

The above measures are a major step taken by RBI looking at the rising cases of cyber frauds. The rules will make sure that the usage of debit and credit cards takes place with more security so that they are not misused.

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