New Delhi: The annual usage of ATM card i.e. debit and credit card has been increasing in the last few years, report released by the Reserve Bank of India (RBI). The Reserve Bank has been continuously taking steps to increase safety in card transactions. The RBI has issued new guidelines related to ATM cards. RBI has asked banks to allow only domestic cards to be used at ATMs and PoS at the time of issuing cards in India.
RBI issued a statement in which it said, ‘separate approval has to be taken for international transactions. Apart from this, for online transactions, non-card transactions and contactless transactions, customers have to set up the services on their card separately’. These guidelines were issued in January but failed to be implemented due to COVID19, so RBI has given users time until 30 September 2020 to implement them.
These new rules were released in January. But given the extraordinary situation due to the Kovid-19 epidemic, card issuers have been given time until 30 September 2020 to implement them.
The new guidelines for debit and credit cards issued by RBI are-
(1) The RBI has told banks that while issuing debit and credit cards allow customers to make domestic transactions. The cards do not allow international transactions without permission from the ATM machine and for shopping at the POS terminal.
2) For international transactions, online transactions and contactless card transactions, customers have to separately register their preference for this. It is clear that if the customer needs it, then only he will get this service.
(3) For existing cards, issuers can decide based on their risk perception. The customer can decide this at any time and which service he has to activate.
(4) Customer can change the limit of his transaction 24*7. In other words, the user can set his ATM limits simply on mobile app, internet banking and ATM machine
(5) The new rules related to ATM cards and credit cards issued by RBI will be applicable from 30 September 2020.