In the RBI annual report edited i.e. Reserve Bank of India has been said to have been that the use of ATM card, i.e. debit and credit card, in the last few years. Continuously the Reserve Bank has taken measures to improve protection in card transactions.
RBI has released new rules in this episode relating to ATM cards, i.e. debit cards and credit cards. At the time of issuing cards in India RBI asked banks to allow only domestic cards to be used at ATMs and PoS. It is said in a statement released by the RBI that separate approval for foreign transactions has to be taken.
Apart from that, consumers have to set up the facilities individually on their account for electronic purchases, no card transactions and contactless transactions. In January, those new rules were released. But given the extraordinary situation caused by the epidemic at COVID-19. Knowledge on RBI ‘s new debit and credit rules:
(1) RBI has asked banks to allow domestic transactions now for customers when issuing debit and credit cards. It is clear that if no need exists, withdraw money from the ATM machine and do not allow to shop at the POS terminal for foreign transactions.
(2) Customers have to sign their preference for this separately for international transactions , electronic transactions, and contactless card transactions. That means that if the customer needs it, then he’ll only get this service, that is, he’ll have to apply.
(3) Emitters will take a decision for existing cards based on their perception of the risk. It means whether you use your card for domestic transactions or for overseas transactions. At any time, the customer can decide which service he must activate and which activator
(4) Customer can change his / her transaction cap 24 hours a day at any time. If you put it in simple words, you can now set your ATM card by going via IVR to the mobile device, internet banking, ATM machine and whenever the transaction cap.
(5) The new rules relating to RBI issued ATM cards and credit cards will apply as from 30 September 2020.