The Reserve Bank of India (RBI) has recently issued updated guidelines regarding the usage of debit and credit cards. These new rules aim to enhance security and improve the overall experience for cardholders. Let’s take a look at the key changes and requirements outlined in the latest guidelines.
- Mandatory Two-Factor Authentication: To strengthen the security of electronic card transactions, the RBI now requires all debit and credit card payments to undergo a mandatory two-factor authentication process. This ensures that cardholders provide additional verification, such as a unique PIN or a one-time password (OTP), to complete transactions securely.
- Contactless Card Transaction Limit: The RBI has revised the limit for contactless card transactions. Cardholders can now make contactless payments up to INR 5,000 per transaction without entering a PIN. This change aims to promote the use of digital payments and enhance convenience for smaller transactions.
- Usage of Cards Abroad: The new guidelines introduce restrictions on the international usage of debit and credit cards. Cardholders are now required to enable/disable their cards for international transactions based on their preferences. This feature provides an additional layer of security by allowing users to control the usage of their cards outside the country.
- Online Transaction Alerts: In an effort to increase transparency and assist cardholders in monitoring their transactions, the RBI mandates banks to send SMS and email alerts for all card transactions. These alerts should be sent in real-time or within a maximum of 5 minutes after the transaction occurs.
- Limits on Failed Transactions: To protect customers from fraudulent activities, the RBI has set limits on failed transactions. If a card transaction fails, banks and financial institutions should refund the amount within a specified time frame. Additionally, any charges levied by the bank for failed transactions should be refunded to the customer.
These new guidelines from the RBI are aimed at ensuring the security, convenience, and overall satisfaction of debit and credit card users. It is essential for cardholders to stay updated with these rules to make informed financial decisions and safeguard their transactions.
For detailed information and a comprehensive understanding of the RBI’s latest guidelines on debit and credit cards, please visit the official RBI website or contact your respective bank for further assistance.
