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How your credit and debit cards will get more secure

Soon your credit and debit cards will be more secure. The Reserve Bank of India (RBI) has issued new rules for debit and credit cards to improve convenience and security.

According to Live Mint, RBI recently issued a new set of rules to improve user convenience and increase the security of debit and credit card transactions. The central bank has asked all card issuers (banks and financial institutions) to give card users the facility to enable/disable their cards for different types of use. These include online, physical, contact-less domestically or internationally.

Over the years, the volume and value of transactions made through cards have increased manifold. To improve user convenience and increase the security of card transactions, RBI has come out with these norms.

So some transactions on your credit and debit card may not be possible unless you ask banks to enable them. From March 16 this year, all new cards, including those which are reissued, would only work in India. If customers want to use their cards outside India, they would need to request their banks for the facility, reported Live Mint.

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Card issuers have also been asked to allow card holders to modify transaction limits within the overall card limit for all types of transactions -domestic and international at PoS, ATMs, online transactions and contactless transactions. RBI has directed banks and other card issuers to enable cards only for use at contact based points i.e. ATMs and Point of Sale (PoS) devices within India at the time of issue of the cards. This means that when a card is issued it will, by default, only be usable to physically swipe at a PoS or at ATM. It would not be enabled for use online or for contact-less transactions.

The facility on a 24x7 basis through multiple channels - mobile application / internet banking / ATMs / Interactive Voice Response (IVR); this may also be offered at branches / offices. RBI has mandated that issuers provide alerts / information / status, etc., through SMS / e-mail, as and when there is any change in status of the card. The provisions of this circular are not mandatory for prepaid gift cards and those used at mass transit systems.

Issuers shall provide cardholders a facility for enabling card not present (domestic and international) transactions, card present (international) transactions and contactless transactions. For existing cards, issuers may take a decision, based on their risk perception, whether to disable the card not present (domestic and international) transactions, card present (international) transactions and contactless transaction rights. Existing cards which have never been used for online (card not present) / international / contactless transactions shall be mandatorily disabled for this purpose.