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Updated October 1st, 2020 at 17:33 IST

New credit card and debit card rules take effect on Oct 1: Here's how this will affect you

The RBI has instructed banks to incorporate a number of measures to curb debit and credit card frauds in the country. Read on to learn about RBI's mandate.

Reported by: Danish Ansari
Credit card and debit card rules
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The Reserve Bank of India (RBI) has recently issued a number of guidelines that aim to make online transactions involving debit and credit cards more secure for the citizens of India. The new guidelines have come into effect starting October 1, 2020. Here's a look at how the changes will affect you.

Also Read | PNB Detects 1200 Crore 'borrowal Fraud' By Ahmedabad Based Company; Reports To RBI

RBI's new credit card and debit card rules

According to the latest RBI mandate, banking customers will now have the ability to register their preferences with banks involving a number of services. These include opt-in and opt-out services, setting up spend limits on transactions conducted online, international transactions and even contactless transactions. Here are the biggest highlights of the new mandate:

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  • When a bank issues or re-issues a debit or credit card to its customers, the cards will work domestically at ATMs and Point of Sale (PoS) terminals within the country.
  • The international facilities will no longer be available for debit or credit card holders by default. This means that if a user needs international facilities enabled on their bank cards, they will have to request the bank to enable the service. 
  • The RBI also instructed banks to allow both debit and credit holders to set up a transaction limit on their cards.
  • Debit and credits card holders will also be able to disable services such as ATM, E-Commerce, NFC, or POS. These services can be re-enabled at a later date.
  • Bank customers will be able to make changes to the transaction limits using the bank's mobile app, online banking, IVR and ATM.
  • Debit or credit cards with no online or contactless transactions in the country or internationally will now be disabled for online payments.

Also Read | UP STF Nabs 4 Men For Credit Card Fraud Worth Crores

Both debit and credit cards are the preferred modes of payment for e-commerce transactions. The above measures from RBI have been designed to curb the growing cases of cyber frauds in the country. It will also allow bank cardholders to exercise more control over how they wish to use their cards. However, you should note that the new RBI mandate only applies to debit and cards, and not on gift cards or prepaid cards.

Also Read | Lt Governor For 100 Pc Coverage Of Kisan Credit Cards In J&K

Image credits: @ostshem | Unsplash

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Published October 1st, 2020 at 17:33 IST

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