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New debit and credit card rules: Switch on, off your card, set your own limit

Amid increasing bank fraud cases, the Reserve Bank of India (RBI) has introduced several new measures to secure debit and credit cards. As of March 16, all new debit and credit cards issued by banks will be enabled only for domestic transactions at ATMs and point of sale (PoS) terminals. If the customer wants to use the card for online transactions, the cardholder must contact the bank. The regulator has also issued a series of new regulations to curb the misuse.

All you need to know

1) All new credit and debit cards, including those that are reissued, can only be used for local transactions at ATMs and Point of Sale (PoS) terminals. RBI said: "At the time of issue/re-issue, all cards (physical and virtual) will be enabled for use only at contact-based points of use within India."

New debit and credit card rules

2) Cardholders must contact their bank to enable any other services, including online transactions, international transactions, and contactless transactions on their debit and credit cards. These services will no longer be available by default.

3) If the customer wants to use the card outside of India, they need to ask the bank to enable international transactions. Till now, most banks issue cards that, by default, can be used anywhere in the world.

4) Banks have the right to deactivate existing cards and reissue them based on the perception of risk.

5) If any individual has not used their card for online transactions, international transactions, and contactless transactions before, the bank will have the option to disable their card.

6) Cardholders will have the option to switch on and switch off their card or any specific method such as ATM transactions and online transactions available on a debit or credit card.

7) The RBI said that customers can also have the facilities to set their transaction limits.

8) The regulatory authority has also requested banks to provide mobile apps and banking network options 24/7 to modify limits and enable and disable services. Bank branches and ATMs will also have these options.

9) The Central Bank added that the new rules will not apply to prepaid gift cards and those cards used at mass transit system, the central bank added.

10) This new rule for debit and credit cards will take effect as of March 16.

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