New Debit card, Credit card Rules.

 New Debit card, Credit card Rules.

👉With the rise in banking fraud cases and thus to make digital payments using debit cards and credit cards more secure the RBI has issued several new guidelines that will come into effect from today, 1 Oct 2020.

👉At the time of issue/re issue all debit, credit cards shall be enabled for use only at ATMs and Points of Sale (PoS) devices within India.

👉Before the notification, most banks issued cards that by default, could be used anywhere in the world. If customer wants to use their debit,credit cards outside India they would need to request their banks for the facility.

👉For existing debit, credit cards issuers may take a decision, based on their risk present (international) transaction rights.

👉All banks, cards issuing companies have been asked by RBI to disable online payment for all debit, credit cards, that have never been used for online or for contactless transactions in india or abroad.

👉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.

👉Users will have 24*7 access to switch ON/OFF change all transaction limits via all available channels, Mobile application / Internet banking / ATMs / Interactive Voice Response.

👉Many banks have also been issuing cards based on near field communication (NFC) technology. A merchant doesn't need to swipe such cards or insert them in the point of sale terminal. These are also known as contactless cards. Card holders will also get the option to enable or disable the NFC feature also.

👉The new regulations apply to debit and credit cards only. Prepaid gift cards or those used at mass transit systems are not covered under this.

👉These measures assume significance amid rising instances of cyber frauds, and will make debit, credit cards more secure and curb their misuse. These directions are issued under section 10(2) of the Payment and Settlement Systems Act, 2007.