Current Affairs

RBI Issued New Rules for Debit and Credit Card

Current context: The Reserve Bank of India issued new rules for credit and debit cards on 15th January 2020 to improve user convenience and increase the security of card transactions.
RBI Issued New Rules for Debit and Credit Card

  • RBI asks banks to allow at the time of issue or re-issue, all cards (physical and virtual) should be enabled for use only at contact-based points of usage [ATMs and Point of Sale (PoS) devices] within India.
  • The instructions given by the RBI assume significance amid rising instances of cyber frauds.
  • Customers will have to separately set up services on their card for international transactions, online transactions, card-not-present transactions and contactless transactions.
  • The new rules will be applicable for new cards issued by the banks from 16th March 2020.
  • Those with old cards can decide whether to disable any of these features.
  • Issuers shall provide to all cardholders 24x7 access to switch ON/OFF or change all transaction limits via all available channels — mobile application/internet banking / ATMs / Interactive Voice Response (IVR).
  • The new provisions are not mandatory for prepaid gift cards and those used at mass transit systems.

Question: 

Q.1 As per the latest norms of RBI for credit and debit cards, banks shall provide all cardholders to switch ON/OFF or change all transaction limits via which channel/channels? 
a. Mobile application
b. Internet banking
c. ATMs
d. Interactive Voice Response (IVR)
e. All the above
RBI Issued New Rules for Debit and Credit Card RBI Issued New Rules for Debit and Credit Card Reviewed by Neha Verma on January 16, 2020 Rating: 5

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