The Reserve Bank of India issued new rules for credit and debit cards to improve user convenience and increase the security of card transactions. The bank said in the notification that over the years, the volume and value of transactions made through cards have increased manifold.
So, in order to improve user convenience and increase the security of card transactions, new rules are issued. The directions are issued under Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007) and shall come into effect from March 16, 2020.
Here’s all you need to know:
1. The central bank asked banks to allow only domestic card transactions at ATMs and PoS terminals in India at the time of issuance/re-issuance of the card.
2. For international transactions, online transactions, card-not-present transactions and contactless transactions, customers will have to separately set up services on their card.
3. Those with old cards can decide whether to disable any of these features.
4. For existing cards, issuers may take a decision, based on their risk perception, whether to disable the card not present (domestic and international) transactions, international transactions and contactless transaction rights. Existing cards which have never been used for online/international/contactless transactions shall be mandatorily disabled for this purpose……..Read More>>