RBI has issued new instructions to increase the security of transactions involving the card.
RBI New Norms For Credit Card and Debit Card
Those who have never used their credit card and debit card for online transactions, will not be able to take advantage of this facility. The Reserve Bank of India (RBI) has directed all banks and card issuers to disable the online payment service in all debit and credit cards that have never been used for online / contactless transactions. The RBI has issued some new instructions to increase the security of transactions involving cards.
The central bank has stated that currently issuing cards for existing cards can be settled on disabling not present (domestic and international) transactions, card present (international) transactions and contactless transactions based on their understanding of risk.
What facilities will the card holders get?
Apart from this, as per the new RBI instructions, at the time of issuing the card, all the cards will be allowed to be used only on ATM and PoS devices in India. Card issuers will have to enable card not present (domestic and international) transactions, card present (international) transactions and contact less transactions for card holders.
The card issuer will have to provide the facility to fix or modify the switch on / off and transaction limit for all types of transactions. It will be available on all types of transactions, domestic and international, PoS, ATM, online transactions, contact less transactions, etc. This facility will have to be made available 24 × 7 and it will have to be provided through several mediums – mobile application, internet banking, ATM, interactive voice response (IVR). This card can also be offered at the issuer’s branch or office.
Card status will be immediately available
Apart from this, information has to be given immediately about the change in the status of the card. The RBI has said that in case of change in the status of the card, the card issuers will have to immediately give alerts or information via SMS or email. The new rules will also be mandatory for prepaid gift cards.