RBI Tightens Rules For Debit and Credit Card Usage; Cards to be Disabled for Online Transactions if not Used Before

RBI tightens rules around debit and credit card usage. Debit, credit cards to be disabled for online transactions if not used before, mandates the Central Bank.

 

PERSONAL FINANCE

Debit, credit cards to be disabled for online transactions if not used before, mandates RBI.

Who Moved My Card?: In a bid to enhance the security features of debit cards and credit cards, the RBI has mandated that while issuing and reissuing the debit and credit cards, banks must ensure that all the debit cards and credit cards are enabled only for domestic transactions at ATMs and point of sale (PoS) terminals.

 

If customers want to use their cards for online transaction, international transactions and contactless transactions, they have to separately apply for these services. If any individual has not used his or her cards for online transaction, international transactions and contactless transactions before, their card will be disabled for these services, RBI noted. Financial Express

 

RBI Tightens Rules For Debit and Credit Card Usage; Cards to be Disabled for Online Transactions if not Used Before

 

Demand for personal loans and credit cards rise amidst slowing in the Indian economy. 

Borrow Today, Pay Tomorrow: As per India Retail Credit Trends report by TransUnion Cibil, consumer credit grew (at lower rates) in Q3 of CY 2019 on the back of increase in financial products such as personal loans and credit cards.

 

Credit card balances and number of accounts increased by 40.7% compared to 29.8% during the same time last year, suggestive of the fact that people are borrowing to meet their everyday expenses.

 

However, overall balances across all consumer loan products increased only by 13% compared to 23.2% the last year. Demand for auto loans, home loans and loans against property fell between July and September 2019, while demand for consumption lending products increased. Livemint

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