Know What is New rules of debit-credit card?
Debit-Credit Card New Rules: The purpose of RBI’s proposed rules for debit and credit cards is to enhance the safety, convenience and customer security associated with electronic transactions.
The Reserve Bank of India (RBI), in its continued efforts to enhance the security and convenience of electronic transactions, has recently proposed new rules governing debit and credit cards. The purpose of these rules is to protect customers from fraudulent activities and to provide them better services.
Advanced Security Measures
Under the new rules, RBI has proposed to mandate additional security measures for cardholders to protect them from unauthorized transactions. One of the major changes will be the introduction of a two-factor verification (2FA) process for all card transactions, including contactless payments.
limited liability
The purpose of RBI’s proposal is also to limit the liability of customers in case of fraudulent transactions. Currently, if you report a fraudulent transaction within a specified time limit, your liability is capped at a certain amount.
clear dispute resolution mechanism
In order to make the dispute resolution process systematic, the RBI proposal calls for setting up a dedicated complaint resolution mechanism. This mechanism will ensure that complaints related to un-authorized transactions or wrongful debits are resolved quickly and efficiently.
Standardization of Card-Limit Control
Under the new rules, RBI has mandated uniformity in card-limit controls provided to customers. This means that banks and credit card issuers should allow customers to set transaction limits within India and internationally based on their preferences and needs.
Easy card issuance and portability
To promote competition and convenience, the RBI proposal also focuses on making card issuance and portability more accessible. The rules mandate that banks and card issuers provide a wide choice of card networks to customers, enabling them to choose the most suitable option.
Significantly, the purpose of RBI’s proposed rules for debit and credit cards is to increase the safety, convenience and customer security related to electronic transactions.
