Your credit and debit cards will be more secure from March this as the Reserve bank of India (RBI) has announced new measures to tighten card security.
While notifying the new security features, the central bank said that over the years, transactions through cards have increased and need to be more secure. As per BankBazaar’s Moneymood report, card usage, especially premium credit cards have increased, and have registered 30% growth annually across the board.
Acknowledging the growth in cards usage, the RBI has directed banks to enhance the security features of debit and credit card transactions. The new features will come into effect from March 16, 2020.
What Are The New Safety Measures?
With the new features, you will only manage to perform certain transactions after you ask your banks to enable them. The RBI guidelines divide your transactions into various baskets: card-present (ATM and POS), card not present (online), contactless (through RFID), domestic and international.
Hereon, all newly issued or reissued cards will be enabled only for card-present domestic usage. The others will be enabled only upon request by customers.
For instance, a customer will only be allowed to use the new or reissued card domestically and will have to request the bank to enable the international usage facility.
To toggle the transaction settings, banks must provide tools that can be accessed 24×7 via mobile application, net banking, IVR, and at bank branches and offices.
The banks will also have to provide email and SMS alerts to inform customers about status changes.
Simply, for all your future online and physical transactions, you will have to request to the bank to enable the services from March 16. This rule will be applied to new or reissued cards.
For existing cardholders, the RBI said that issuer will decide to disable or enable the features based on the risk profile.
It said, “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.”
The move is aimed at curbing the misuse of debit and credit transactions and provide more control to the customers over their cards.
BankBazaar.com is India’s leading online marketplace for loans and credit cards.