RBI New Rules for Debit and Credit Cards – RBI asks banks to allow only domestic card transactions at ATMs and PoS terminals in India at the time of issuance/reissuance of card.
Reserve Bank of India (RBI) issued the new rules for credit and debit cards to improve user convenience and increase the security of card transactions.
For international transactions, online transactions, card-not-present transactions and contactless transactions, customers will have to separately set up services on their card using various option provided to them.
After 16 March, 2020, these rules will be applicable for new cards. All customers with old cards can decide whether to disable any of these features.
For existing cards user, issuer banks may take a decision, based on their risk perception, whether to disable the card not present (domestic and international) transactions, international transactions and contactless transaction rights.
Existing cards which have never been used for online/ international/ contactless transactions shall be mandatorily disabled for this purpose.
Users will have 24×7 access to switch ON/OFF or change all transaction limits via all available channels — mobile application / internet banking / ATMs / Interactive Voice Response (IVR).
Issuer banks shall provide to all cardholders facility to switch on/ off and set/ modify transaction limits (within the overall card limit, if any, set by the issuer) for all types of transactions – domestic and international, at PoS/ ATMs / online transactions / contactless transactions, etc.,
The provisions, however, are not mandatory for prepaid gift cards and those used at mass transit systems.
The latest instructions may helpin curbing the cyber frauds.