As the number of transactions of debit and credit cards have increased, RBI has now issued new rules for the debit and credit cards to improve security and better convenience.
RBI told banks to allows domestic transactions only at the time of issuance and reissunace of the cards, at ATMs and PoS terminals.
For other transactions such as international transactions, online transactions, card-not-present transactions and contactless transactions, customers will need to subscribe to separate services.
From16 March, 2020, these new rules will be levied. Customers having old cards will get a choice to decide whether they want to remove any of such services.
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. All old cards which have never been used before for online/ international/ contactless transactions will be disabled for this purpose.
24×7 access will be provided to users switch ON/OFF or change all transaction limits via all available channels — mobile application / internet banking / ATMs / Interactive Voice Response (IVR).
Banks will provide facility to switch on/ off and set/ modify transaction limits (within the overall card limit, if any, set by the issuer) for all types of transactions – domestic and international, at PoS/ ATMs / online transactions / contactless transactions, etc.,
These rules will not be applicable for prepaid gift cards and those used at mass transit systems.