RBI Allows Banks to Issue Electronic Cards for Overdraft Accounts

Published on April 24, 2020
Current Context: The Reserve Bank of India has granted permission to all banks to issue electronic cards to natural persons having Overdraft Accounts that are only in the nature of personal loan without any specific end-use restrictions.
RBI Allows Banks to Issue Electronic Cards for Overdraft Accounts
  • This will allow the user to use it for domestic transactions only.
  • However, RBI has put the limit that the card should be issued for a period not exceeding the validity of the facility and should also be subject to the usual rights of the banks as lenders.
  • Also the RBI has mentioned in its circular that the restriction on cash transaction will not apply to overdraft facility provided along with Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts.

Static Part:

  • Headquarters of RBI– Mumbai, Maharashtra
  • Governor of RBI – Shaktikanta Das
  • Deputy Governors of RBI– Bibhu Prasad Kanungo, Mahesh Kumar Jain, Michael Debabrata Patra.

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