The new rules for debit and cards have come into force from Monday, March 16, 2020.The norms, which were issued by the Reserve Bank of India (RBI) on January 15 this year came into force from today and are expected to enhance security and reduce fraud.
New debit/card rule.
As per the new guidelines by the central bank, debit or credit card will be enabled for contact-based points of usage in India only at the time when it is being issued or reissued.This means that new cards can only be used at ATMs and point of sale (PoS) devices within the country.
As per the new rule, the issuer of the debit/credit cards will have to provide holders with a facility to activate or start online transactions, international or overseas transactions, and contactless transactions.These facilities will remain disabled until the issuer enables them.
Who will the new debit/credit card rule affect?
Any customer, who gets a new debit/credit card from March 16 onwards, will be affected by the new rules as they will have to enable online and international transactions separately at the time of applying for the new card.
Also, existing cardholders who have not made any online or international transaction to date will face the wrath as the RBI has asked banks to disable the facility for these cards.These users will also have to request for initiating the facilities.