new facility will reduce fraud by card cloning.
New Delhi(Kalinga Voice) : In view of the increase in banking fraud cases, the Reserve Bank of India has issued new guidelines for securing debit and credit cards. These changes will be effective from 1 October 2020. RBI has issued new rules for debit and credit cards to improve the security and convenience of card transactions.
As per the new guidelines, card users will now be able to enter preferences (opt-in or opt-out from services, spending limits, etc.) for international transactions, online transactions as well as contactless card transactions. Therefore, debit and credit cards issued by banks will only be enabled for domestic transactions at ATMs and Point of Sale (POS) terminals. Banks can deactivate existing cards and re-issue them based on risk perception.
RBI has asked all banks and other card issuing companies to deactivate online payment services of all debit and credit cards, which have never been used for online or contactless transactions in India and internationally. If the cardholder wishes to use a credit or debit card outside India, they will have to ask the bank to enable international transactions. Experts believe that the new facility will reduce fraud by card cloning.
Cardholders can enable and disable the NFC (contactless) facility, which currently has a limit of Rs 2,000 per day without a PIN. Cardholders will also be able to set a limit on various transactions.
Benefits for Cardholders Managing International Expenses: Many international e-commerce websites neither ask for CVV PIN nor send one-time-password (OTP) to confirm transactions. This new step will either restrict international use, or ensure transaction security.
