RBI directs banks to allow only domestic card transactions at ATMs and PoS
- Reserve Bank of India (RBI) has directed banks to allow only domestic card transactions at ATMs and PoS terminals in India at the time of issuance/reissuance of card.
- The new rules for debit and credit cards are intended to increase security and reduce frauds kick in card transactions. These rules will help in curbing the misuse of debit and credit cards.
- These rules will be applicable for new cards from 16 March. Those with old cards can decide whether to disable any of these features.
- As per the existing rules, these services used to come automatically with the card, but now it will start at the request of the customer.
- Debit or credit card customers who have not yet done any online transaction, contactless transaction or international transaction with the card, then these services on the card will automatically stop from 16 March.
- Reserve Bank of India (RBI) has asked all banks to provide mobile banking, net banking option to enable limit and enable and disable service 24 hours a day, seven days a week.
- If the customer makes any change in the status of the card, the bank will alert the customer through SMS/email and send the information.
- Issuers shall provide to all cardholders 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, etc.
- The provisions, however, are not mandatory for prepaid gift cards and those used at mass transit systems.
- The latest instructions come in the wake of rising instances of cyber frauds and the huge increase in the use of cards.
- With a view to promote digital payments, RBI has brought to the notice of the general public that non-cash digital payment options (like NEFT, IMPS, UPI and BBPS) are available round the clock to facilitate fund transfers, purchase of goods / services, payment of bills etc.
- In the context of the efforts to limit the fallout of the corona virus pandemic by avoiding social contact and visit to public places, public can use these modes of digital payment from the convenience of their homes through online channels like mobile banking, internet banking, cards, etc. and avoid using cash which may require going to crowded places for sending money or paying bills, RBI stated in a release.Source: https://www.domain-b.com/
