New rules brought for RBI credit and debit card, know it or you will regret it

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RBI New Debit, Credit Card Rules: Due to an increase in banking fraud cases, Reserve Bank of India has introduced several new guidelines to secure debit cards and credit cards. The Reserve Bank of India (RBI) has recently released a new set of rules to improve user convenience and enhance the security of debit and credit card transactions. The central bank has asked all card issuers (banks and financial institutions) to allow card users to enable/disable their cards for different types of usage. The RBI said in a statement that new norms have been issued under Section 10 (2) of the Payment and Settlement Systems Act, 2007 and will come into force from 16 March.

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The following are the new norms issued by RBI for card users and how they will affect them:

Card enable / disable feature

The RBI has asked card issuers to provide the facility to switch on and off their debit or credit cards at any point.

RBI has told the card issuers that the card will be enabled only for physical use only while issuing or reissuing the card. This means that when a card is issued, it will, by default, be usable only for physically swiping at PoS or ATM. It will not be able to be used for online use or contactless transactions but can be further enabled by the cardholder.

For international transactions, online transactions, contactless transactions, customers have to activate these services separately on their card.

Transaction limit

RBI recently stated that the cardholder should also be able to modify the transaction limit for all types of transactions. This will include online transactions and contactless transactions, point of sale (PoS), ATM, domestic and international transactions.

This facility should be provided by RBI through the bank's mobile application, Internet banking, ATM, Interactive Voice Response (IVR) and the branch or office of the bank on a 24x7 basis.

For existing card

For existing cards, issuers can decide whether to close the card based on their risk perception. Existing cards that have never been used for online will be essentially disabled for this purpose.

Every cardholder must be alerted via SMS or email, as any change in the status of the card occurs.


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