RBI’s Card Transaction Regulations

RBI’s Card Transaction Regulations

The network of credit cards, debit cards, and prepaid cards is multiplying nationwide, and the rules governing them are frequently changing. The RBI, India’s central bank, recently released updated rules or regulations for credit and debit cards. This new regulation will significantly benefit all cardholders’ safety and inclusive safety experience. You should be aware of these new rules if you have a debit and credit card:

• There must be two-factor authentication: To improve the security of electronic card transactions, the RBI allows two-factor verification for all debit and credit card payments. For the transaction to be performed safely, these necessities further confirmation from cardholders, such as a unique PIN or one-time password.

• The transaction limit for contactless cards: The RBI changed the transaction cap to give cardholders an additional option. Without providing a PIN, the cardholder can make contactless payments of up to Rs 5000 per transaction. The RBI is attempting to boost and facilitate digital payment for minor transactions with this measure.

• Promotion of international card usage: The foreign usage of debit and credit cards is subject to specific restrictions set by RBI. The ability to use the card for foreign transactions must be turned on or off by the cardholder, depending on their preferences. Cardholders will be shielded against international card fraud thanks to this functionality.

• Alert for Online Transactions: The RBI has ordered all banks to provide clients with mandatory SMS and email alerts for all kinds of card transactions. All these notifications should be real-time updates delivered to customers five minutes after the transaction.

• The limit for failed transactions: Additionally, the RBI has restricted declined cards to safeguard customers from fraud and theft. If a card transaction is unsuccessful, the bank and the financial institution must refund the money to the consumers within a specific time. In addition, the customers will need to receive any charges from the bank or financial institution assessed on the unsuccessful transaction.

Conclusion:

RBI recently issued these guidelines as the network of credit and debit cards, among others, is expanding daily. These rules will help you to keep yourself safe in every situation and will not lead to any fraudulent takeaway of your money. If you know these rules, you are well ahead of the fraudsters.