RBI

RBI enhances Security of Card Transactions. Restrictions & options to cardholders

RBI enhances Security of Card Transactions. Restrictions & options to cardholders. Contact based points of usage in India, decision based on risk perception

Reserve Bank of India, in order to improve user convenience and increase the security of card transactions, has decided to enhance the Security of Card Transactions.

RBI enhances Security of Card Transactions

The various decisions taken by the Reserve Bank of India in this regard are as under:  

(a) 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. Issuers shall provide cardholders a facility for enabling card not present (domestic and international) transactions, card present (international) transactions and contactless transactions, as per the process outlined in para (c).

(b) For existing cards, issuers may take a decision, based on their risk perception, whether to disable the card not present (domestic and international) transactions, card present (international) transactions and contactless transaction rights. Existing cards which have never been used for online (card not present) / international / contactless transactions shall be mandatorily disabled for this purpose.

(c) Additionally, the issuers shall provide to all cardholders:

  1. 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, etc.;

  2. the above facility on a 24×7 basis through multiple channels – mobile application / internet banking / ATMs / Interactive Voice Response (IVR); this may also be offered at branches / offices;

  3. alerts / information / status, etc., through SMS / e-mail, as and when there is any change in status of the card.

However, These provisions are not mandatory for prepaid gift cards and those used at mass transit systems.

Download RBI Circular Click Here >>

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