New Debit Card, Credit Card Rules from Tomorrow, Details Inside

0
2189

The Reserve Bank of India (RBI) has issued several new guidelines that will come into effect from tomorrow, 1 October 2020.

The new guidelines of RBI for credit, debit cards effective tomorrow are as follows:

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

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

3)For existing debit, credit cards, issuers may take a decision, based on their risk perception, whether to disable the card not present (domestic and international) transactions, card present (international) transactions and contactless transaction rights.

4) All banks, card 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.

5) 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.

6) Users will have 24×7 access to switch ON/OFF or change all transaction limits via all available channels — mobile application / internet banking / ATMs / Interactive Voice Response (IVR).

7) 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 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.

8) Card holders on both debit and credit will have a new facility to set up transaction limit.

9) 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.

10)”These directions are issued under Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007),” RBI said.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments