Mumbai:
To improve user convenience and increase the security of debit and credit card transactions, the banking regulator Reserve Bank of India(RBI) has now asked the banks to provide facility to switch on / off and set / modify transaction limits (within the overall card limit, if any, set by the issuer) for all types of transactions – domestic and international, at PoS / ATMs / online transactions / contactless transactions.
The facility should be available on a 24×7 basis through multiple channels – mobile application / internet banking / ATMs / Interactive Voice Response (IVR) and may also be offered at branches / offices. Alerts / information / status, etc., through SMS / e-mail should be sent to the customer as and when there is any change in status of the card.
These directions on enhancing security of card transactions will come into effect from March 16, 2020, as per the RBI notification.
RBI has directed banks and other card issuers to enable cards only for use at contact based points i.e. ATMs and Point of Sale (Pos) devices within India at the time of issue of the cards. This means that when a card is issued it will, by default, only be usable to physically swipe at a PoS or at a ATM. It would not be enabled for use online or for contact-less transactions.
The card would have to be enabled for these type of transactions by the user himself or herself. Currently, when a card is issued it can immediately be used for card present (swiping) transactions, online and contact-less transactions.
Card Issuers should provide cardholders a facility for enabling card not present (domestic and international) transactions, card present (international) transactions and contactless transactions, For existing cards,issuers may take a decision, based on their risk perception, whether to disable the card not present (domestic and international) transactions, card present (international) transactions and contactless transaction rights. Existing cards which have never been used for online (card not present) / international / contactless transactions will have to be mandatorily disabled for this purpose, said RBI.
The provisions of the RBI's circular are not mandatory for prepaid gift cards and those used at mass transit systems.
According to RBI notification, the volume and value of transactions made through cards have increased manifold over the years