The Reserve Bank of India on Thursday (January 16, 2020) has introduced new rules to enhance the security of card transactions. As per RBI notification, while issuing and reissuing the debit and credit cards, banks must ensure that all the debit cards and credit cards are enabled only for domestic transactions at ATMs and point of sale (PoS) terminals. If customers want to use their cards for online transactions, international transactions and contactless transactions, they have to separately apply for these services. 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 that have never been used for online (card not present) / international/contactless transactions shall be mandatorily disabled for this purpose. However, provisions of these new rules are not mandatory for prepaid gift cards and those used at mass transit systems. Banks must ensure that cardholders can ‘switch on’ or ‘switch off’ the online transaction, international transactions and contactless transactions at ATMs and PoS terminals. Additionally, the card holders shall be permitted to modify transaction limit for all types of transactions – domestic and international, at PoS / ATMs / online transactions / contactless transactions, etc, within the overall limit set by the issuer. Customers should also have the option of opting in these services via 24X7 mobile applications, net banking, ATMs / Interactive Voice Response (IVR).
Tokenisation is a process by which actual card details masks sensitive card details of your debit / credit / prepaid card with an alternate code. In tokenization process the primary details of a card are replaced with a surrogate value. Read: what is tokenization for enhancing the security of Card Transactions?
Related articles:
Now you can mandate standing instruction for recurring card payments
Features of different types of virtual cards/prepaid instruments
“Under the explanation to Section 25 of the Negotiable Instruments Act, 1881 (Central Act 26…
When the trial balance does not tally due to the one-sided errors in the books,…
Errors in Trial Balance are mistakes made during the accounting process that cannot always be…
“Under the explanation to Section 25 of the Negotiable Instruments Act, 1881 (Central Act 26…
The Reserve Bank of India is expanding reporting requirements for foreign exchange transactions. Starting February…
“Under the explanation to Section 25 of the Negotiable Instruments Act, 1881 (Central Act 26…