To promote safe transactions with debit and credit cards, Reserve Bank of India (RBI) has asked all banks to allow card users to enable/disable various types of usage in their cards. That is, now you will be able to decide which facility you want to turn on the card and which you do not.
Now debit and credit card users will be allowed to choose which services they want to keep active online: Physical, contactless, domestic or international.
The RBI has prohibited banks from issuing contactless credit and debit cards to all cardholders by default. It is also said that along with this facility, international transactions will be activated by the user. Apart from this, card-issuing banks have been asked to allow the cardholder to amend the transaction limit within the overall card limit for all types of transactions.
RBI said that the cards (physical and virtual) in all India will be active for use only at contact-based point centres like ATMs and point of sale when making a debit or credit card issue or re-issue. The RBI has stated that the volume and value of transactions made through cards have increased manifold over the past several years. According to the central bank, the new decision is expected to improve the convenience of users and increase the security of card transactions.
RBI has directed that the issuers of existing debit and credit cards may decide on their own risk that they have to deactivate the card’s present (domestic and international) transactions, international transactions and contactless transaction rights. or not. However, for existing debit and credit cards that have never been used in online, international or contactless transactions, such features will be essentially kept inactive.
A type of optional use of your credit or debit card:
Is this an example of better operating systems that RBI Governor Shaktikanta Das had urged the banks to adopt?