New Delhi: As fraud cases are on the rise in the banking services, the Reserve Bank of India has issued fresh guidelines to make digital payments using debit cards and credit cards more secure. Notably, these guidelines are coming into effect from today. Also Read – RBI Postpones Monetary Policy Committee Meeting as Posts Lie Vacant
These guidelines from the RBI will improve the security and convenience of card transactions. While issuing the guidelines, the RBI has directed all banks to not give international facilities to customers’ cards, unless the customer himself demands it Also Read – RBI to Retain Lending Rates, Accommodative Stance, Say Experts | Read Here
1) As per the guidelines, all new credit and debit cards issued by the banks will be only enabled for domestic transactions at ATMs and point of sale (PoS) terminals. Also Read – RS Passes Banking Amendment Bill 2020, Co-op Banks to Function Under RBI’s Supervision Now | Key Points
2) The RBI said that the debit card and credit card users from now on are allowed to set up their own transaction limits.
3) All the card users will now have an option to opt-in or opt-out of services on their credit/debit cards such as online transactions (e-commerce), international transactions, and contactless transactions (NFC-based).
4) In the guidelines, the RBI has asked all the banks to disable online payments for all those debit and credit cards which have never been used for online or contactless transactions.
5) The RBI said that many banks have been issuing cards based on near field communication (NFC) technology. Customers don’t need to swipe such cards or insert them in the point of sale terminal.
6) The RBI said that the guidelines are issued under Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).
