Starting today, a set of new rules will apply to debit and credit cards to increase security and reduce the risks of cyber fraud.
The new regulations were announced by the Reserve Bank of India (RBI) on January 15 and will take effect on Monday (March 16).
How do these new rules affect you? Here's what you need to know.
Applying for a new card? Here's what has changed
Cardholders will now have to separately set up the following services for new cards: international transactions, online transactions, card-not-present transactions, and contactless transactions.
Starting March 16, per the new rules, if you seek issuance/re-issuance of a debit or credit card, banks will only enable domestic card transactions at ATMs and PoS (Point of sale) terminals.
Other services will have to be separately enabled.
For existing users
What do the changes mean for existing cardholders?
Till now, these services were enabled automatically by the bank upon issuance of a debit or credit card.
For your existing card, you may choose to disable these services, based on security risk perception.
However, existing debit or credit cards that have never been used for online (card not present), international, or contactless transactions will be mandatorily disabled.
Here are other changes that take effect today
Issuers have also been directed to provide cardholders with the facility to switch on/off and set/modify transaction limits (within the overall card limit) through all types of transactions—domestic and international, at PoS (Point of sale)/ATMs/online transactions/contactless transactions, etc.
This service, the RBI rules state, must be available 24x7 through mobile application/internet banking/ATMs/Interactive Voice Response (IVR), along with bank branches/offices.
Customers to receive SMS/email alerts upon change in card's status
Issuers have also been directed to alert the customer through SMS or email notification whenever there is a change in the status of their card. Meanwhile, the new rules are not mandatory for prepaid gift cards and those used at mass transit systems.