The Reserve Bank of India has issued new rules for debit and credit cardholders in India.
The new rules for Debit and Credit cards:
According to a news update by the RBI, banks now allow only domestic card transactions at ATMs and PoS terminals during the issuance/re-issuance of debit or credit cards.
*Effective today, customers need to set up separate services on their card for international, online and cards to present transactions.
Other new rules for reissued or newly issued debit and credit cards
The new rules for debit and credit cards are applicable for those issued from today. If you hold an old debit and credit card, you can disable the features.
The new rule for cards in India also explains that if you have not carried out any online transaction on your debit/credit cards, the services on those cards will stop, effective today.
Banks issuing new cards will provide customers with the option to enable or disable and set transaction limits within the overall card limits. This is applicable for domestic and international transactions at PoS/ATMs as well as online transactions.
RBI mandated all banks to enable mobile banking and net banking services for customers to enable/disable limits and the above transaction services. The mobile banking options will be available 24 hours a day, 7 days a week.
Tips to protect debit and credit card transactions
The new rules came in the wake of the rising cyber fraud crimes in the country. Last year, the RBI registered a total of 9over 900 fraud cases involving cards in India.
- Only use the ATMs in a bank – If possible, use ATMs in a bank. Other places have a higher risk of skimming – a process which can intercept and store your credit or debit card details. ATMs at banks have more secure CCTV surveillance and 24 hours security personnel.
- Avoid using public Wi-Fi to make transactions – This is a mistake I made once. Do not use your local Cafes wifi to do a financial transaction using your card. Make sure you have a password-protected wireless signal or a secure home Wi-fi when you pay using a card. Look for the ‘https’ on a payment portal before you make payment. It means the connection is secure.
- Change it up – Change your password regularly, check your bank statements every month. A tip from an expert states that a pin can make direct fraud difficult because, unlike the CVV, the pin isn’t printed on the card.
- Always check the total amount on the PoS device before authorising.
- Shred documents that have your debit and credit card details. – Do not directly toss it into the trash.
Most importantly, if you have watched the Netflix show Jamtara, you should know this, do NOT share your card details with anyone on the phone.
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*Not applicable to prepaid gift cards