Alert for Credit/Debit card users – RBI’s new debit, credit card guidelines to be effective from Oct 1, 2020.

In an attempt to make online and card payments more secure, the Reserve Bank of India (RBI) has issued new guidelines that will be effective from October 1, 2020. As India forwards on a path to become more digital enabled, it’s important that the ecosystem is made fully secure and convenient. Let’s take a look at what all changes when RBI’s new guidelines are effective from October 1.

RBI’s new guidelines for Credit, Debit card holders:

1.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.

2.This means that debit and credit card servies will only be enabled for transactions at ATMs (domestic) and Point of Sale terminals.

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

4.They will have option to allow or not to allow a particular service on their credit-debit cards such as ATM, POS, E-Commerce or NFC.

5.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.

6.Users will now be able enable or disable the NFC feature also.

Experts believe the new feature will reduce the frauds from card cloning. 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.”

Cardholders will also have the ability to enable and disable the NFC (contactless) facility which currently has a limit of Rs 2,000 per day without a PIN. Cardholders will also be able to set a limit on various transactions. For instance, an individual who travels to Singapore can activate the global transaction mandate on the card and spend as per his/her needs and can deactivate the same once back in India. This will save both the customers and the bank’s time in setting up a global transaction mandate. Mirjankar, of InfrasoftTech, says “The apps that banks have already rolled out with these features allow customers to set separate limits for each channel such as ATM, PoS, card-not-present, and NFC, in addition, to be able to revise downward their overall card limit.”

Report – Vikas Chandra Agrawal

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