RBI’s 3 major rules for ATM card; follow these to prevent financial losses

New Delhi: The Reserve Bank of India (RBI) has made several new guidelines regarding use of debit cards and credit cards effective from October 1, 2020 to make the transaction more secure and safer. 

The RBI has directed all banks to not unnecessarily give international facilities to customers’ cards, unless the customer himself demands it. The move is aimed to stop increasing fraud transactions using debit and credit cards. 

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Also in the backdrop, RBI Says, Public Awareness initiative of the central bank has issued alert to customers on how they can follow three rules of ATM card to prevent financial losses.

RBI Says has tweeted:

As per the three rules, you need to follow

Set your transaction Daily Limit

Set Domestic/ international limit

Start or stop international limit

The debit cards, also popularly known as ATM cards can be used to withdraw cash from an ATM, purchase of goods and services at points of sale (PoS) terminals or e-commerce (online purchase). While they can be used domestically, the international usage is also allowed if requested by the holder of the card. They can also be used for domestic funds transfer from one person to another subject to prescribed limits and conditions.

As per new guidelines, customers will get the option 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. Both debit and credit holders will now be allowed to set up transaction limit.