New norms for debit, credit card security from today

Mumbai: Credit and debit cardholders that have not used their cards for contactless or international payments may find this feature, i.e. the online or contactless transactions facility, deactivated from Monday. These features will have to be activated using a text message, or mobile or internet banking.

Earlier this year, the RBI had asked all banks to ensure that at the time of issuance, cards are enabled only for payment in Indian stores. Only if the user requests for online usage or contactless usage can the card be activated for the same. Some lenders, like SBI, have already started alerting the customers based on their usage history. These norms are aimed at protecting those who are not familiar with online transactions or payment gateways from being defrauded. The RBI had said in a circular that “...facility to switch on/off and set/modify transaction limits (within the overall card limit, if any, set by the issuer) for all types of transactions — domestic and international, at PoS/ATMs/ online transactions/contactless transactions” should be provided on a 24X7 basis through multiple channels.

The channels should include mobile applications, internet banking, ATMs, or interactive voice response. The RBI had further said that 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.