The Reserve Bank of India has issued new guidelines to secure debit and credit cards to counter rising number of bank frauds. The changes will be effective from October 1, 2020. The new rules have been issued for debit and credit cards to improve the security and convenience of card transactions.
Here RBI’s new guidelines for credit, debit cards effective tomorrow :
- As per new rules, people will now be able to register for preferences such as opt-in or opt-out services, spend limits and other services for online transactions, international transactions and contactless transactions.
- This means that debit and credit card servies will only be enabled for transactions at ATMs (domestic) and Point of Sale terminals.
- Card holders on both debit and credit will have a new facility to set up transaction limit.
- They will have option to allow or not to allow a particular service on their credit-debit cards such as ATM, POS, E-Commerce or NFC.
- RBI has asked all banks, card issuing companies to disable online payment for all debit, credit cards that have never been used for online or for contactless transactions in India or abroad.
- Card holders will also get the option to enable or disable the NFC feature also.
The new regulations apply to debit and credit card only. Prepaid gift cards or those used at mass transit systems (such as metro) are not covered under this.
“These directions are issued under Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007),” RBI said.
These measures assume significance amid rising instances of cyber frauds, and will make debit, credit cards more secure and curb their misuse.