te Want debit cards or credit cards? RBI cracks down, restricts banks from issuing these contactless cards | Zee Business

Want debit cards or credit cards? RBI cracks down, restricts banks from issuing these contactless cards

RBI has restricted banks from issuing contactless debit cards and credit cards by default to all the card users.

Want debit cards or credit cards? RBI cracks down, restricts banks from issuing these contactless cards
RBI says that contactless debit cards and credit cards facility along with international transactions will have to be turned on or off by the user. Photo: Reuters

The Reserve Bank of India (RBI) has restricted banks from issuing the contactless debit cards and credit cards by default to users indiscriminately. The RBI directive issued on 15th January 2020 further said that the contactless card facility along with international transactions will have to be enabled by the debit cards or credit card users - in other words, the users can switch the cards on or off as per their needs. However, the RBI re-iterated that provisions of this circular are not mandatory for prepaid gift cards and those used at mass transit systems.

Issuing directions to the Indian banks in regard to the contactless card facility to all credit cards and debit cards users the Indian Central Bank said that at the time of issue or re-issue, all cards (physical and virtual) shall be enabled for use only at contact-based points of usage like automated teller machines (ATMs) and point of sale (PoS) devices within India. The Central Bank further said that over the years, the volume and value of transactions made through cards have increased manifold and this decision is expected to improve user convenience and increase the security of card transactions.

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For existing cards, RBI said the issuers may decide, based on their risk perception, whether to disable the card not present (domestic and international) transactions, card-present (international) transactions and contactless transaction rights.

The RBI directives further said that the issuers will have to provide an option to switch on or off and set or modify transaction limits for all types of transactions – domestic and international. The facility should be available round the clock through multiple channels - mobile application, internet banking, ATMs, Interactive Voice Response (IVR) and may also be offered at branches, it said.

Written By: ZeeBiz WebTeam
Edited By: Harish Dugh
Updated: Thu, Jan 16, 2020
02:07 pm
New Delhi, ZeeBiz WebDesk
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