RBI New Rules for Debit and Credit Cards from 1st October 2020

Last Updated : Sept. 30, 2020, 5:50 p.m.

As we can see that the banking fraud cases are rising day by day so the Reserve Bank of India has come up with certain guidelines related to the Debit Cards and Credit Cards. RBI has asked the banks to improve the security system related to the online payments through Credit and Debit Cards. So, here you can see the RBI New Rules for Debit and Credit Cards. Now as per the RBI’s guidelines those credit and debit cards are not eligible for online transactions that haven’t been used for making online payment before. So, you can see all the terms and conditions that are present in the RBI’s guidelines.

New Debit Card and Credit Cards Guidelines by RBI

• All the banking and card-issuing institutions have to disable the online payment of those credit and debit cards that have never been used for online or contactless payments in India or internationally.
• This rule will be applicable from the 1 ^st of October 2020.
• Cardholders can register their preferences related to international transactions.
• Online Transactions and Contactless Transactions can also be managed as per the preferences of the cardholders.
• Debit and Credit Card issued by the banks will only be eligible for making domestic transactions at ATMs and Point of Sale Terminals.
• Banks have the right to deactivate current debit and credit cards and reissue them based on the risk perception.
• The RBI’s New Rule doesn’t apply to the Prepaid Cards and Gift Cards.
• The cardholders can set their limit for the ATM Withdrawal, NFC, Point of Sale Machine, and eCommerce Transactions.
• If the credit cardholder or the debit cardholder wants to an international transaction then they will have to ask their respective card provider to enable the international transaction facility.

Benefits of the RBI’s New Rule for the Cardholders

If you are using a credit card or a debit card then you must explore the benefits of this new rule. These guidelines have made your online usage of the cards safe and secure.

Securing International Transactions

There are some international shopping websites that don’t ask for PIN or OTP to initiate the payment from a debit or a credit card. Therefore according to the RBI new rules for debit and credit cards, you will have to enable international transactions. So, no one can make a fraudulent payment from your cards on an international website.

Preventing Fraudulent Activities

Now you can put the limit of transactions on your card as per your preferences. So, if in case your card is stolen and misused then the damage will be low just because pf the limit you have set for different transactions. You can set a limit for ATM Withdrawals, POS Transactions, Contactless Payments, and online transactions.

Managing Expenses

Setting the limit on the various transactions of the debit and credit cards will help you to manage your expenses easily. You can manage your spending habits by increasing or decreasing the limit of different transactions that you will do with your cards.

Managing the Credit Card Limit

Now as per the RBI’s New Guidelines, you can manage your transaction limit from the mobile application or net banking. Most of the banks and card providers give you the facility of mobile banking and net banking through which you can easily manage your credit card and debit card transaction limit.