The RBI has issued new rules for debit and credit cards where cardholders can now enable or disable their cards themselves for online transactions and contactless use.
Customers can also set limits for all types of transactions. According to RBI’s new directive, only domestic card transactions at ATMs and point of sale devices in India will be allowed when the card is issued.
For other transactions like international, online and contactless, customers will have to get these services enabled. This initiative is taken to increase the security for card transactions.
Currently, customers can use their cards for all types of transactions immediately after issue. The decision on existing cardholders will be taken based on their risk perception.
Existing cards that were not used for online or contactless transactions will be disabled. These rules are not compulsory for prepaid gift cards and cards used at mass transit systems. Cardholders can avail the facility from all platforms throughout the day. The new rules will be effective from March 16.