Reserve Bank of India or RBI has announced some big changes to way debit and credit cards are being used right now in India.
These steps have been taken to safegaurd the interests of millions of debit and credit card users in India, but at the same time, it can induce some widespread chaos and panic as well.
For instance, after March 16th, your debit and credit cards can be blocked if they have not been used for any online payments ever.
Sounds confusing?
Debit/Credit Cards To Be Blocked After March 16th If..
In case any debit or credit card user has not used their cards for any online payments till now, then the online payments facility will be blocked, after March 16th.
In a statement, RBI said, “Existing cards that have never been used for online/international/contactless transactions shall be mandatorily disabled for this purpose.”
Once blocked, the user will need to reapply for cashless payment feature on the debit/credit card.
This blocking of debit/credit cards will begin after March 16th.
Block Of Debit, Credit Cards: How Will It Work?
As per the new rules by RBI, every new debit and credit card issued henceforth will have online payments disabled, by default.
If a customer wishes to use these facilities, then they will have to apply to the bank for the same.
Now, for existing card users, RBI has said that the banks must block those cards, which have never been used for any online payments. In case a card has been used for any online payments, they also can be blocked, based on the ‘risk assessment’ of the bank.
In short, after March 16th, any debit or credit card can be blocked for online services.
Yes, we know, it’s a bit confusing, and we are trying to get more insights into this.
New Rules For Debit Cards
Besides this, RBI has announced several new rules for usage of debit cards and credit cards.
- By default, every debit card will be activated only for domestic transactions such as ATM withdrawals from domestic ATMs, and usage of cards at domestic merchants
- By default, every new card will have the facility of online transactions, new banking, contact-less transactions switched off. The user will have to apply separately for the same.
- International transactions, by default, will be switched off for all users. Only via reapplying for this service, banks will enable it
- Users will now have the option to ‘switch on, off’ online services on their debit cards, right in the ATM kiosk. They can also set limit of cash withdrawal at ATMs.
We will keep you updated, as more details come in.
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