RBI Starts New Security Rules For Credit/Debit Cards
The new rules for credit/debit cards that Reserve Bank of India (RBI) issued in January, will come into force on Monday. The new rules will increase security by reducing frauds. Also, they will boost convenience of the user and security of transactions.
RBI rules for credit/debit cards
According to new rules,only domestic card transactions at ATMs and PoS terminals will be allowed at the time of issuance/reissuance of card. For international transactions, online transactions, card-not-present transactions and contactless transactions, the card holders will have to separately set up services on their cards.
These rules will come into force on March 16 and will be applicable to both the old and new cards. Old card holders have time to decide whether they need all services. Presently these services are provided with all cards but after the new rules, customers would have to ask for the services.
Also, the RBI directed the banks to allow mobile baking and net banking service to enable limit and enable and disable service 24×7. As soon as a customer makes changes in his/her credit/debit card service, his/her bank will notify him/her through SMS/email.
The cardholders will have the facility to switch on/off and set/modify transaction limits for all types of transactions – domestic and international, at PoS/ATMs/online transactions/contactless transactions etc.
Prepaid cards and those used at mass transit system are kept free from the ambit of new credit/debit card rules. These cards will continue to get the services they have.