The Reserve Bank of India announced the revised set of rules for all debit and credit card users recently.
According to the new rules, all the credit and debit cards will be enabled for use only at ATMs and PoS (Point of Sale devices) within India.
The important points released by RBI are listed below as quoted by Business today.
RBI Statements
For existing cards, issuers may take a decision, based on their risk perception, whether to disable the card not present (domestic and international) transactions, card present (international) transactions and contactless transaction rights.
Existing cards which have never been used for online (card not present) / international / contactless transactions shall be mandatorily disabled for this purpose.
These directions are issued under Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007) and shall come into effect from March 16, 2020.
However, the revised provisions will not be mandatory for prepaid gift cards and smart cards that are used in mass transit systems like Namma Metro, Mumbai Metro, Delhi Metro etc.
Earlier, all the banks replaced magstripe cards with EMV chip-based cards to ensure secure transactions through ATMs and Pos devices.
