RBI Rules For Cards: The network of credit cards, debit cards, prepaid cards is expanding rapidly in the country and the rules related to these keep on changing from time to time.
The country’s central bank Reserve Bank of India has recently issued updated guidelines or guidelines for credit and debit cards. These new rules are very important for the safety and inclusive safety experience of all types of card holders.
If you are also a debit-credit card holder, then you should know about these new rules-
Mandatory Two-Factor Authentication
To make electronic card transactions more secure, the RBI allows all debit and credit card payments to go through a two-factor authentication process. Under this, cardholders have to go through the process of additional verification – such as through a unique PIN or one time password, your transaction can be done securely.
Contactless Card Transaction Limit
RBI has amended the limit of contactless card transactions giving another facility to the card holders. Cardholder can make contactless payments up to Rs 5000 per transaction without entering the PIN. Through this change, RBI is trying to increase digital payments for small transactions and make them easier.
Promotion of use of cards abroad
RBI has imposed some limits on the international use of debit and credit cards. Cardholders are required to enable or disable the card for international transactions as per their preference. Through this feature, card holders will be protected from misuse of their cards outside the country.
Online Transaction Alert
RBI has instructed all banks to compulsorily send SMS and email alerts to customers for all types of card transactions. All these alerts should be like real time updates and should reach the customers within a maximum of 5 minutes of the transaction.
Failed Transaction Limit
To protect the customers from fraud and fraud, RBI has also imposed a limit on failed card transactions. If a card transaction fails, then the bank and the financial institution will have to return the refund of the money to the customers within a specified time. Apart from this, if the bank or financial institution has taken any charge on the failed transaction, then it will also have to be returned to the customer.
