Reserve Bank of India (RBI) has set up new guidelines for credit, debit cards that will come into effect from today, 1 October 2020.
By these new rules, they intend to make digital payments using debit cards and credit cards more secure.
RBI’s new guidelines for Credit, Debit cardholders:
As per new rules, people will now be able to register for preferences such as opt-in or opt-out services, spend limits, and other services for online transactions, international transactions, and contactless transactions.
This means that debit and credit card services will only be enabled for transactions at ATMs (domestic) and Point of Sale terminals.
Cardholders on both debit and credit will have a new facility to set up a transaction limit.
They will have the option to allow or not to allow a particular service on their credit-debit cards such as ATM, POS, E-Commerce, or NFC.
All banks, card issuing companies have been asked by RBI to disable online payment for all debit, credit cards that have never been used for online or for contactless transactions in India or abroad.
Users will now be able to enable or disable the NFC feature also.