To combat the ever increasing financial frauds and to make online payments safer, RBI (Reserve Bank of India) has issued new guidelines for debit and credit cards effective from 1st October 2020.
The new guideline for Debit and Credit Card by RBI-
International Transactions to be Optional-
According to this users can now either opt in Or opt out for International Transactions. The bank can disable old cards for international payments or issue new cards for the customers choosing to indulge in international exchange.
Gaurav Chopra, CEO, IndiaLends says, “For new cards being issued, the users will only be able to use these services after registering for them. The main reason for this is to prevent card fraud and misuse and give the consumer better power to manage his or her finances. With spend and withdrawal caps, even if an individual becomes a victim of cyber or ATM fraud, the damage will be limited.”
Disable cards that have never been used for online payment-
RBI has directed banks to disable the online payment service for all those debit and credit cards that have never been used for online money exchange. This does not include gift cards or prepaid cards.
Rajesh Mirjankar, MD and CEO, InfrasoftTech, says, “RBI has mandated banks to incorporate risk-mitigation features in customers’ debit cards and credit cards from 1st October. With this new feature, consumers can set up a limit on their credit cards and debit cards. Cardholders will have the option to switch on and off their debit and credit cards for any facility – ATM, NFC, POS, or eCommerce (card-not-present) transaction.”
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