
- Oct 01, 2020
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.
Read more at www.livemint.com