New rules for debit, credit cards kick in from today

New rules for debit, credit cards kick in from today
Representational Pic

The new rules for debit and credit cards to increase security and reduce frauds kick in from Monday. In January, the Reserve Bank of India (RBI) had issued new rules to improve user convenience and increase the security of card transactions. These rules will help in curbing the misuse of debit and credit cards.

RBI has directed banks to allow only domestic cardtransactions at ATMs and PoS terminals in India at the time ofissuance/reissuance of card. For international transactions, onlinetransactions, card-not-present transactions and contactless transactions,customers will have to separately set up services on their card.

These rules will be applicable for new cards from March 16.Those with old cards can decide whether to disable any of these features.

As per the existing rules, these services used to comeautomatically with the card, but now it will start at the request of thecustomer.

Debit or credit card customers who have not yet done anyonline transaction, contactless transaction or international transaction withthe card, then these services on the card will automatically stop from March16.

The Reserve Bank has asked all banks to provide mobilebanking, net banking option to enable limit and enable and disable service 24hours a day, seven days a week.

If the customer makes any change in the status of the card,the bank will alert the customer through SMS/email and send the information.

Issuers shall provide to all cardholders facility to switchon/off and set/modify transaction limits (within the overall card limit, ifany, set by the issuer) for all types of transactions — domestic andinternational, at PoS/ATMs/online transactions/contactless transactions, etc.,

The provisions, however, are not mandatory for prepaid giftcards and those used at mass transit systems.

The latest instructions come in the wake of rising instancesof cyber frauds and the huge increase in the use of cards.

Related Stories

No stories found.