RBI Rules For Cards Transactions: Debit card and credit card users should be careful, otherwise you may face problems in the transactions done through them. Let us know about it in detail.
The network of credit cards, debit cards and prepaid cards is expanding rapidly in the country and the rules related to them keep changing from time to time. The country’s central bank,
Reserve Bank of India, has recently issued updated guidelines for credit and debit cards. These new rules are very important for the safety and overall safety experience of all types of card holders. Mandatory Two-Factor Authentication
To make electronic card transactions more secure, RBI allows all debit and credit card payments to proceed through a two-factor authentication process. Under this, cardholders have to go through the process of additional verification – like a unique PIN or one time password, your transaction can be done securely only.
Contactless Card Transaction Limit
Giving another facility to cardholders, RBI has amended the limit of contactless card transactions. Cardholders can make contactless payments up to Rs 5000 per transaction without entering the PIN. Through this change, RBI is trying to increase digital payments for small transactions and make them easier.
Encourage use of cards abroad
RBI has imposed some limits on the international use of debit and credit cards. Cardholders are required to enable or disable the card for international transactions as per their preferences. Through this feature, cardholders will be protected from misuse of their cards outside the country.
Online Transaction Alert
RBI has instructed all banks to compulsorily send SMS and email alerts to customers for all types of card transactions. All these alerts should be like real time updates and should reach the customers within maximum 5 minutes of the transaction taking place.
Failed transaction limit
To protect customers from fraud and cheating, RBI has also imposed a limit on failed card transactions. If any card transaction fails, the bank and financial institution will have to refund the money to the customer within a stipulated time. Apart from this, if the bank or financial institution has taken any charge on the failed transaction, then it will also have to be returned to the customer.