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Your debit or credit cards will soon be disabled if you have not done this

IamCheated.com Research Team | March 09, 2020  5:40:pm

Your debit or credit cards will soon be disabled if you have not done this

Debit and credit card frauds are rising each day. A lot of people in India have lost lakhs of rupees to card fraud. So, with the intention of increasing the security of debit and credit card transactions, RBI has come up with a new rule. Under this new rule, if you have not used your debit or credit card for online or contactless transactions, they will be disabled for such transactions on March 16th.

In a notification issued by RBI on January 15th, all card issuers were asked to disable online transactions and contactless payment services of all debit and credit cards; which were never used online.

If the cardholders don't want their cards to be disabled for online and contactless transactions; they have time till March 16th. Cards would have to be used for online or contactless transactions.

What is a contactless transaction?

A contactless transaction takes place when you buy something using your debit or credit card through radio frequency identification (RFID) technology-enabled on the cards.

The RBI notification said, "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. The directions are issued under Section 10(2) of the Payment and Settlement Systems Act, 2007."

When compared to the past few years, the number of people using debit and credit cards has risen rapidly.  With the intention of making card transactions safe and secure, RBI has asked banks and other card issuers to provide the following facilities to cardholders. These facilities will be made available on March 15.

1. The cardholders must be provided with the facility to switch on/ off and set/ modify transaction limits (within the overall card limit if any, set by the banks) for all kinds of transactions like domestic and international at PoS/ ATMs / online transactions / contactless transactions and so on.

2. Card issuers must make sure that this facility is provided on a 24x7 basis through various channels - mobile application/ internet banking/ ATMs/ Interactive Voice Response (IVR). This facility will even be offered at bank branches.

3. When there is a change in the status of the card, the cardholders would receive SMS alerts/ e-mail.

Other new rules

1. RBI has asked banks to allow only domestic card transactions at ATMs and PoS terminals in India at the time of issuance/re-issuance of the card.

2. International transactions will be switched off for all cardholders by default. To enable this service, you have to apply for it.

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