In an attempt to make digital debit and credit card payments more secure, the Reserve Bank of India (RBI) has issued several new guidelines that will take effect from tomorrow, October 1, 2020. Let’s take a look at RBI’s new guidelines for credit and debit cards starting tomorrow:
1) At the time of issue / reissue, all debit and credit cards must be enabled for use only at ATMs and point of sale (PoS) devices within India.
2) If customers want to use their debit and credit cards outside of India, they will need to request the facility from their banks. Before the notification, most banks issued cards that, by default, could be used anywhere in the world.
3) For existing credit and debit cards, issuers can make a decision, based on their perception of risk, whether to disable card-not-present transactions (national and international), card-present transactions (international) and contactless transaction rights.
4) The RBI has requested all banks and card issuing companies to disable online payment for all debit and credit cards that have never been used for online or contactless transactions in India or abroad.
5) Under the new rules, people will now be able to sign up for preferences such as opt-out or subscription services, spending limits, and other services for online transactions, international transactions, and contactless transactions.
6) Users will have 24×7 access to turn on / off or change all transaction limits through all available channels: mobile app / internet banking / ATMs / interactive voice response (IVR).
7) Many banks have also been issuing cards based on Near Field Communication (NFC) technology. A merchant does not need to swipe those cards or insert them into the point of sale terminal. They are also known as contactless cards. Cardholders will also have the option to enable or disable the NFC function.
8) Holders of debit and credit cards will have a new facility to set the transaction limit.
9) The new regulations apply only to debit and credit cards. Prepaid gift cards or those used in public transport systems (such as the subway) are not covered by this.
10) “These instructions are issued under Section 10 (2) of the Payment and Settlement Systems Act of 2007 (Act 51 of 2007),” RBI said.
These measures come to prominence amid growing cyber fraud cases, will make debit and credit cards safer, and curb their misuse.
.
