RBI issues new debit and credit card rules to improve the security: All you need to know
HIGHLIGHTS
- New Rules to improve user convenience and the security of card transactions, RBI issued new rules for 2020.
- The new rules shall come into effect on Cards transaction from 16 March 2020
- RBI Asks all the Banks to Provide Facility to Switch On or Off Debit/Credit Cards to Prevent Frauds.
The Reserve Bank of India, the banker’s bank on Wednesday issued new rules for credit and debit card transactions to improve user convenience and increase the security for card transactions purposes. The bank said throughout their notification that over the years, the volume and value of transactions made through the cards have increased and get popularized in India with the living standards of the society.
The apex bank of all banks asked the card issuers (other banks) to allow their customers the card transactions at ATMs and PoS terminals within India at the time of issuance or re-issuance of any debit/ credit card.
For existing cardholders, the banks can make a decision based on their risk perception on whether to disable the card not present (domestic or international) for the transactions. Issuers (Banks) shall provide their cardholders a proper facility for enabling the card for present (domestic and international) transactions.
The existing cards, which have never been used for any online transactions, should be mandatorily disabled to ensure the proper security. For security purposes, the Indian cardholders should be offered with the facility to switch on, or off and set, (modify transaction) within the limits of the card for all types of transactions (Online, offline, international payments).
The above facility for security purposes should be provided on the basis of 24×7, through multiple channels of customer care support. They are moving forward to improve all other facilities such as mobile applications, internet banking, ATMs, Interactive Voice Response (IVR), etc. The security improvement can also be offered at home branches or offices of banks.
For keeping all the security under control, banks should send the cardholders quick alerts, every information, and all the status throughout SMS or e-mail, when there is any change in the status of the card or normal use.
