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RBI Debit and Credit Card Use Update

On the 1st of October, 2020, the RBI released a new set of guidelines for the use of debit and credit cards. This particular update is significant due to the sharp rise of fraudulent cases, especially during the Covid-19 times. This update from the RBI therefore seeks to make the use of debit and credit cards more safe, secure, and reliable.

Fraud on credit cards can be disastrous, and debit card fraud can be pretty bad as well. Recently, there has been a sharp rise in credit and debit card fraudulent activities. In order to make debit and credit cards more secure, the RBI or Reserve Bank of India has released a set of new guidelines with effect from October 1, 2020. The main aim of these measures, therefore, is to prevent card misuse.

Here is what you can expect from this RBI update:

  • New credit and debit cards issued by all banks from now on shall only be enabled for use for domestic transactions at ATMs and PoS terminals.

  • If users of debit and credit cards wish to use their cards for transactions outside India, they need to request for this facility at the bank.

  • All debit and credit cards users shall from now on get the additional ability to set up transaction limits.
    Card users from now on get the ability to set up transaction limits.

  • Card users shall have the additional option to opt-in and opt-out feature, through which they can opt in or out from online ecommerce transactions, international transactions and contactless NFC-based transactions.

  • RBI has further instructed and credit-card companies banks to discontinue online payments for credit and debit cards which have not been used for the purpose abroad and in India.

  • Card users shall have 24/7 access to the On/Off Switch for changing transaction limits on all channels like internet banking, mobile app, IVR and ATMs.

  • You can now get cards from banks which have Near Field Communication Technology. This means that the merchant does not need to insert cards or swipe them to make a transaction. These are called Contactless Cards. You get the choice of enabling or disabling this facility at will.

  • These measures are only for debit and credit cards. It does not cover prepaid gift cards.

If you want to make any changes to your existing debit or credit cards, or wish to opt-in or opt-out of certain services, use your bank’s internet banking or mobile banking platforms. Enter the apps using your User ID and Password. Go to the Cards section and then to Manage Cards. From here you can make all the changes you want according to your choice.


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