Debit and Credit card rules revised: Everything you need to know

• The rules for debit cards and credit cards have been revised by the RBI.
• As per the rules, new cards will be enabled only for domestic ATM and PoS use.

New rules for debit and credit cards aimed at reducing online fraud have kicked in starting from today. In its notification dated January 15, the Reserve Bank of India announced a slew of measures aimed at increasing security of debit cards and credit cards in the country.

With the new rules, the RBI aims to reduce the likelihood of fraud on unsuspecting users by enabling these functionalities only for users who have opted for it.

What are the new rules?

As per the new guidelines by RBI, when a debit or credit card is issued or reissued, it shall be enabled for use only at contact-based points of usage within India. This means that new cards will only be usable at ATMs and point of sale (PoS) devices within India.

The card issuer is required to provide users with a facility to enable online transactions, international transactions and contactless transactions.

Who will be affected by the new rules?

The new rules will primarily affect those users who get a new card from March 16. These users will have to enable online transactions and international transactions separately while applying for a new card.

Additionally, some existing card holders may also be affected by the new rules. The RBI has asked banks to disable online transactions and international transactions for those cards which have never been used online or for international transactions.

Existing card users will also be able to get these facilities disabled on their cards if they want to. In its guidelines, the RBI has said that the facility to switch on/off and set/modify transaction limits for domestic and international transactions should be provided on a 24x7 basis through multiple channels.

How to know if you have been affected?

As per RBI guidelines, banks are required to notify you by SMS of any changes to your card status. So, existing card holders will receive a SMS from their bank if online transactions or international transactions have been disabled for your card.

If international transactions were already disabled on your card, you will not get a notification.

How to enable online and international transactions?

If you are applying for a new card, you will be asked whether you want to enable online transactions or international transactions by your bank. If the facility for online transactions or international transactions has been disabled on your existing card, you can contact your bank to get this facility re-enabled.

See also:

Here is what happens when your credit/debit card number, name and CVV end up on the dark web

How to withdraw cash from ATM without debit card