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News You Can Use: RBI’s New Rules to Secure Credit and Debit Card Transactions Effective Oct. 1

Team BankBazaar
·2-min read


In a bid to curtail online frauds, the Reserve Bank of India has issued a fresh set of guidelines to secure credit card and debit card transactions effective from October 1, 2020. Some of the key rules include:

  • Users will now be able to register for preferences like opt-in or opt-out services, spending caps, and other services pertaining to online transactions, international transactions and contactless transactions involving credit cards and debit cards.

  • As such, credit cards and debit cards issued by banks will only be enabled for domestic transactions at ATMs and point of sale (POS) terminals, several media reports stated.

  • Debit card and credit card users will now be allowed to set up transaction limits for various types of transactions.

  • They will also be able to allow or disallow a particular service on their credit or debit cards like ATM, POS, e-commerce or NFC.

  • Credit and debit card holders will also have the ability to enable or disable contactless transaction systems like near field communication (NFC) feature. NFC feature currently has a transaction limit of Rs. 2000 per day without a PIN.

  • The central bank has also asked banks and other card-issuing companies to disable online payment services of such debit cards and credit cards that have never been used for online transactions both in India and internationally.Cardholders need to request their banks to enable international transactions if they wish to use them internationally.

    The set of new guidelines are expected to control rising cases of frauds pertaining to credit and debit card transactions. These steps are expected to not just make your transactions safer but also to instil financial discipline by preventing overspending and reckless usage. Do note these changes will not alter the credit limit of your credit cards but would give you the power to set sub-limits for particular transactions. Let’s suppose if you do not shop internationally, you can disallow such usage of your cards to prevent misuse.

    You can also set a transaction limit for online transactions which would ensure even if there’s a misuse, it would not be more than the spending cap. Cardholders should be well-advised to login to their netbanking or mobile banking to make the desired changes related to their credit or debit cards or check for any communication from their bank with the detailed instructions to do the same.

    BankBazaar.com is India’s leading online marketplace for credit cards, loans and more.