Debit Credit Card Usage Rules: The Reserve Bank of India has recently issued new guidelines regarding the usage of debit and credit cards. These new rules are aimed at enhancing security and providing convenience to cardholders.
Two-step verification is now necessary:
To strengthen the security of electronic transactions through cards, RBI has made two-step verification mandatory. Now all debit and credit card payments will mandatorily have to go through this process. Two-step verification involves using a PIN number or a one-time password (OTP) to complete a card transaction. This reduces the chances of fraud considerably.
Contactless card transactions:
RBI has revised the limit for contactless i.e. contactless card transactions. Cardholders can now make contactless payments up to Rs 5,000 per transaction without entering a PIN. The objective of this change is to promote the use of digital payments and increase convenience for small transactions.
Use of the card abroad :
Under the new guidelines, restrictions have been imposed on international use of debit and credit cards. Cardholders will now be required to enable or disable their cards for international transactions based on their preferences. This feature provides an additional layer of security by allowing users to control the usage of their card outside the country.
Online Transaction Alert :
In an effort to increase transparency and help cardholders monitor their transactions, the RBI has mandated banks to send SMS and email alerts for all card transactions. These alerts should be sent in real time or maximum within 5 minutes of the transaction taking place. Now it will be mandatory to give information about all transactions to the users immediately.
Failed Transaction :
To protect customers from fraudulent activities, RBI has put a limit on transaction failures. If a card transaction fails, banks and financial institutions have to refund the money within a stipulated time frame. Not only this, any charges levied by the bank for the failed transaction will have to be refunded to the customer.
These new RBI guidelines are aimed at ensuring safety, convenience and overall satisfaction of debit and credit card users. It is essential for cardholders to stay updated with these rules to make the right financial decisions and safeguard their transactions. Detailed information on the latest RBI guidelines on debit and credit cards can be obtained from the RBI website or from the bank concerned.
