RBI issues directions to enhance the security of card transactions

Jan 16, 2020 | by Avantis RegTech Legal Research Team


Industry Specific Compliance

The Reserve Bank of India (RBI) on January 15, 2020, issues Notification to improve user convenience and increase the security of card transactions under the Payment and Settlement Systems Act, 2007. It has been decided that all cards shall be enabled for use only at contact based points of usage at the time of issue and re-issue with India.

The followings are the directions issued by RBI:-

1. Issuers shall provide cardholders a facility for enabling card not present (domestic and international) transactions, card present (international) transactions and contactless transactions.

2. Issuers may take a decision whether to disable the card based on their risk perception

3. The issuers shall provide to all cardholders the followings:-

a) facility to switch on / off and set or modify transaction limits (within the overall card limit, if any, set by the issuer) for all types of transactions – domestic and international, at PoS / ATMs / online transactions / contactless transactions, etc.;

b) the above facility on a 24x7 basis through multiple channels - mobile application / internet banking / ATMs / Interactive Voice Response (IVR); this may also be offered at branches / offices;

c) alerts or information or status, etc., through SMS or e-mail, as and when there is any change in status of the card.

The provisions of this circular are not mandatory for prepaid gift cards and those used at mass transit systems and shall come into effect from March 16, 2020.

[Notification No. DPSS.CO.PD No.1343/02.14.003/2019-20]


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