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RBI issues new credit and debit card guidelines to curb credit fraud and make transactions more secure

new credit and debit card guidelines

RBI issues new credit and debit card guidelines to curb credit fraud and make transactions more secure


The Reserve Bank of India (RBI) is always bringing new things to make digital payments in our country more secure and easy for its users. Recently, RBI issued some new guidelines to make payments safer and these guidelines will go into effect from today, 1st October.

RBI has instructed all banks in the country not to provide non-essential international facilities on the customers’ cards. They are saying that unless the customer demands an international payment facility on their card, they should not be given this facility automatically. The purpose of this directive is to curb fraudulent transactions through debit and credit cards. So, if you need to do international transactions, you won’t be able to unless you make a separate request with your bank to provide you with the facility to do so.

new credit and debit card guidelines

If you are travelling to another country then you can activate the global transaction mandate on your card and spend as per your needs and when you get back to India, you can deactivate it. This will be easy and less time-consuming for both the bank and the cardholder.

According to Gaurav Chopra, CEO of IndiaLends, “For new cards being issued, the users will only be able to use these services after registering for them. The main reason for this is to prevent card fraud and misuse and give the consumer better power to manage his or her finances. With spend and withdrawal caps, even if an individual becomes a victim of cyber or ATM fraud, the damage will be limited.”

According to the new RBI guidelines, now customers will get a chance to choose the services they want. They can decide for themselves which facility they need, how much spending limit they want for online transactions, etc.

Many banks have been issuing cards based on near field communication (NFC) technology due to pandemic. Cardholders can also enable and disable the NFC (contactless) facility which currently has a limit of Rs 2,000 per day without a PIN.

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They have made Debit and credit card service available at domestic ATMs and the point of sale and the cardholders can easily set their credit limit on various transactions and can change it whenever they want. So, in case your card is stolen or if there’s a fraud, this will diminish the damages.

The bank has asked all banks and card issuing companies to end the facility of online transactions on those cards which have never been used for online transactions.

You will have access to switch ON/OFF any service or change all transaction limits at all times via all available channels, from net banking to Interactive Voice Response (IVR). If you want to stop a particular service, then simply press the off button. If you want to start any service, click on the button in front of it.