RBI released new guidelines for debit and credit cards which have come into effect from March 16, 2020. These norms were introduced on Jan 15th of this year and are expected to enhance security measures against fraud. Here’s all you need to know about these new guidelines.

What does RBI’s new rule mean for credit and debit cards?

According to the new guidelines, new debit or credit cards will be enabled for contact-based points of usage in India only when issued. The issuer of the cards will have to provide facilitators to activate them for international use.

Other services that need to be activated separately are online transactions, ‘card-less’ or contactless transactions and ‘card-not-present’ transactions.

Also, according to the new rules, customers can modify their transaction limits of contactless, online, domestic and international transactions within the limit set by the issuer.

These can be modified by the user at any time through the mobile application, IVR, SMS services or net banking.

Debit or credit cards that have never been used for online, international, contactless or ‘card-not-present’ transactions will be disabled for these kinds of transactions from March 16th.

In a nutshell…

  • Customers applying for debit or credit cards after March 16th, 2020 will have to activate the aforementioned services separately.
  • Existing customers will have to check what services are active and reapply for others if necessary.

All customers of card issuers will be notified of these changes via SMS and/or email in case any services are disabled.

How can a customer activate online and international transactions of your cards?

Existing cardholders will have to contact their banks or card-issuers for the reactivation of these services.

Customers applying for new cards will be asked what services they would need on their cards.

Though nothing concrete has been decided yet, most banks would incorporate the activation of these transactions through their mobile applications, IVR frameworks, SMS and net banking services.

These guidelines have been proposed as a result of the sudden insurgence in cyber frauds employing debit and credit cards.

They are, however, not mandatory for prepaid gift cards and cards that are used at mass-transit systems.

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