RBI guidelines: Your Debit, Credit Card will be blocked after March 16 if you don't do this!
RBI new Debit, Credit card rules: The Reserve Bank of India or RBI on Wednesday issued new rules for debit and credit cards to improve convenience and security. As per RBI's new direction, all those Debit Card and Credit Card which are never used for online transactions, will soon set blocked, a move aimed at enhancing security for digital transactions.
For instance, debit and credit cards can be blocked after March 16th, if they have not been used for any online payments ever.
The RBI on Wednesday has directed all banks and other card-issuing companies to disable online payment services of all debit and credit cards that have never been used for online/contactless transactions. In a statement dated 15 January 2020, the central bank told banks and card issuers: “Existing cards which have never been used for online (card not present)/international/contactless transactions shall be mandatorily disabled for this purpose.”
RBI has also asked banks to allow only domestic card transactions at ATMs and PoS terminals in India at the time of issuance/reissuance of card.
“At the time of issue/re-issue, all cards (physical and virtual) shall be enabled for use only at contact-based points of usage [viz. ATMs and Point of Sale (PoS) devices] within India,” RBI said.
"...facility to switch on/off and set/modify transaction limits (within the overall card limit, if any, set by the issuer) for all types of transactions -- domestic and international, at PoS/ATMs/ online transactions/contactless transactions" should be provided on a 24x7 basis through multiple channels, RBI added.
The channels should include mobile applications, internet banking, automated teller machines, or interactive voice response.
These steps have been taken to safeguard the interests of millions of debit and credit card users in India, but at the same time, it can induce some widespread chaos and panic as well.
Debit Card / Credit Cards To Be Blocked
Debit and Credit cardholders, who have never used their cards for online transactions,
In case any Debit and Credit cardholders has not used their cards for any online transactions till now, then the online payments facility will be blocked, after March 16th.
“Existing cards that have never been used for online/international/contactless transactions shall be mandatorily disabled for this purpose," RBI said in a statement.
In short, after March 16th, any debit or credit card can be blocked for online services.
Once blocked, the cardholder will need to reapply for a cashless payment feature on the debit/credit card. This blocking of debit/credit cards will begin after March 16th.
If a customer wishes to use these facilities, then they will have to apply to the bank for the same.
The new provisions will be mandatory for prepaid gift cards and those used as mass transit systems.
