As on 16 March 2020, The RBI changed rules for debit/credit cards. Here’s how they will impact you.
As on 16 March 2020, the Reserve Bank of India (RBI) has changed rules regarding cards and announced the introduction of new features that will enable better security measures for customers.
According to this report, between 2018 and 2019, the number of credit cards in circulation in India increased by 27 per cent. While in May 2018, the number was 38.6 million, it became 48.9 million by May 2019. These figures, combined with the government’s push to make payments in India digital, increase the need to protect the interests of the cardholder.
Here’s what this means for you.
1. The RBI has directed banks to allow only domestic card transactions at ATMs and PoS (Point of Sale) terminals in India at the time of issuance/re-issuance of the card.
This means that the first swipe of your new card/replacement card issued post-loss or expiry has to happen on a terminal within India.
2. Furthermore, when international transactions, online transactions, card-not-present transactions and contactless transactions take place, customers will have to set up services on their card separately.
Do note that while this service was a given with the old cards, customers will now have to opt for it if they need it.
3. A cardholder can now modify the transaction limit within the overall card limit for all types of transactions.
This includes domestic and international transactions, transactions at PoS machines, ATMs, online transactions and contactless transactions.
4. To make it convenient for cardholders to use this service, it will be available round the clock.
One can access this service via the bank’s mobile application, internet banking, ATMs, interactive voice response (IVR) or by visiting the bank’s branch or office.
5. If you are a debit or credit card holder, but have not yet made any online transaction with the card, then these services will automatically stop on 16 March 2020.
6. Any change made to the status of the card, or any new service which is activated or deactivated, will be intimated by the bank to the cardholder via an SMS/email.
Also Read: Banks Cannot Charge You For These ATM Transactions: RBI Rules You Need to Know!
And if you are alerted about a change which you did not authorise, get in touch with the bank to have it reversed at the earliest.
Note: While these services automatically came with the card earlier, cardholders will now have to request for them to be activated.
(Edited by Shruti Singhal)