The Reserve Financial institution of India (RBI) launched some new norms for debit and bank cards earlier this yr on January 15. The brand new guidelines got here into drive beginning Monday, March 16, 2020, and are geared toward enhancing safety and decreasing frauds.
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What are the brand new guidelines for debit and bank cards?
In keeping with the brand new tips on the regulation of cost aggregators (PAs) and cost gateways (PGs), debit and bank cards will probably be used just for contact-based factors of utilization in India and the choice of utilizing the ATM PIN as a method of authentication for ‘card not current’ transactions shall not be accessible. This merely signifies that the brand new debit and bank cards can solely be used for ATMs and level of sale (PoS) transactions inside India.
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On-line transaction disabled utilizing ATM PINs
The RBI has additionally requested the cost aggregators within the nation to take away the choice of utilizing ATM PIN to finish on-line transactions and will probably be regulating the actions of all cost aggregators within the nation. It has said in its tips that based mostly on the suggestions acquired and making an allowance for the vital features of those intermediaries within the on-line funds house as additionally maintaining in view their function vis-à-vis dealing with funds, they’ve determined to control in entirety the actions of all of the cost aggregators.
In keeping with the rules on the regulation of PAs and cost gateways (PGs), the already present cost aggregators might want to obtain a internet value of Rs 15 crores by March 31, 2021, and a internet value of Rs 25 crores on or earlier than March 31, 2023. RBI additionally stated that the net-worth of Rs 25 crores shall be maintained always thereafter.
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As per the brand new rule, the issuing debit or bank card authority might want to present its customers with a facility which can permit them to allow or provoke on-line transactions, worldwide or abroad transactions, and contactless transactions. The amenities will solely be enabled as soon as the issuer prompts them. Which means that so as to use debit or bank cards for the above-mentioned transactions, holders might want to individually allow companies.
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Picture credit: PTI