The RBI new rule on Debit and Credit card: Know the 10 Changes & Benefits

The RBI new rule on Debit and Credit card can make Digital Payments more safe and secure. The RBI or Reserve Bank of India or has come up with several new guidelines that have become effective from 1st October 2020. So, without wasting any further time, let’s scroll down and to find the RBI’s guidelines for credit card payment and debit card payment below.

RBI new rule on Debit and Credit Card

RBI new rule on Debit and Credit card for secure payments

Mentioned below are the RBI new rule on Debit and Credit card. Let’s scroll down and know about them.

  1. All debit, credit cards at the time of issue or re-issue, can only be used only at the ATMs and Point of Sale devices in India.
  2. As per RBI new rule on Debit and Credit card, if customers desire to use their debit and credit cards outside India, they would have to apply to respective banks and get the facility likewise. Before, the debit and credit card guidelines of RBI was like – the cards issued by Banks could be used anywhere in the world.
  3. For the existing debit and credit cards, the respective Banks or issuers will have to make a decision based on their risk perception. Based on the RBI guidelines for credit card payment and debit card payment, they will have to decide – whether to disable any card-not-present (domestic, international) transactions, card-present (international) transactions and also contactless transaction rights.
  4. As per the RBI new rule on Debit and Credit card, all banks and card issuing companies will have to RBI to disable online payment for those cards that are not used at all in India or Abroad. This is also applicable for contactless transactions within India or abroad.
  5. As per new RBI guidelines for credit card payment and debit card payment, users will now be able to register for various facilities like opt-in/opt-out services, spending limits, other services prior to online, international, and contactless transactions.
  6. Users will be able to access 24×7 to switch ON and OFF or change their transaction limits through all available channels like – mobile apps, internet banking, ATMs, Interactive Voice Response or IVR.
  7. So far, many banks have been issuing cards on the basis of near field communication technology or NFC. As per the RBI new rule on Debit and Credit card, a merchant doesn’t need to swipe the cards or insert them at the sale terminal. These are contactless cards which the holders can enable or disable the NFC feature.
  8. The new debit and credit card guidelines of RBI states that users can modify their transaction limits.
  9. The new rules are applicable only on debit and credit cards. Any prepaid gift cards or public transport cards at are not covered under this RBI new rule on Debit and Credit card.
  10. According to Reserve Bank of India – “These directions are issued under Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007)”.

RBI new rule on Debit and Credit Card: Steps to manage debit card and credit card services

The RBI new rule on Debit and Credit card presents few benefits and flexibility to the people. But how to avail them? Check the steps below:

  • First of all, users will have to visit the official website of the bank and login to the account through mobile or net banking.
  • Then one will have to go to the Cards section and click on ‘Manage Cards’.
  • There will be two options – Domestic and International.
  • One has to choose any of the options between them to make changes.
  • One can close any particular transaction by turning to turn it off and start by turning it on.
  • Finally, if users want to limit the limit of their transactions, then they will be able to do it as per need.

How will the RBI new rule on Debit and Credit Card benefit cardholders?

The RBI new rule on Debit and Credit Card will surely benefit the cardholders in several ways. These are:

  1. Many international e-commerce websites never ask for a CVV pin or send the one-time password or OTP to confirm any transaction. These RBI guidelines for credit payment and debit card payment is going to restrict international usage and or have a spending limit which will ensure that no misuse happens.
  2. Users will be allowed to set transaction limits on their cards. This is available on various modes of transactions like at the ATM, POS, and also card-not-present transactions. It will reduce the damage caused in case the card is stolen and missed, or the card is skimming fraud.
  3. The RBI guidelines for credit card payment will not affect the limit of the credit card. The spend limits or restrictions are flexible and can be changed at any point in time using net banking or mobile applications.

These measures under the RBI new rule on Debit and Credit card assume significance while there is a rise in cyber frauds. These rules will definitely reduce the misuse of debit and credit cards and make transactions more secure.


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