New rules have been introduced by Reserve Bank of India ensuring more security of Debit cards and Credit Cards.While issuing and reissuing the debit and credit cards, banks must ensure that all the debit cards and credit cards are enabled only for domestic transactions at ATMs and point of sale (PoS) terminals, RBI said in a notification.
RBI also added that,” At the time of issue/re-issue, all cards (physical and virtual) shall be enabled for use only at contact based points of usage within India”. A separate application needs to be made to use their cards for online transaction, international transactions and contactless transactions.
Also, if these cards are not used for online transaction, international transactions and contactless transactions before, they shall be disabled. In case of existing card holders, the bank has its discrete decision to to disable the card for domestic and international transactions, online and contactless transaction rights based on their risk perception.“Existing cards which have never been used for online (card not present) / international/contactless transactions shall be mandatorily disabled for this purpose,” the central bank said. The cardholders have been given a switch on and switch off option for online transactions, international transactions and contactless transactions at ATMs and PoS terminals.