Why your Credit, Debit Cards will be More Secure after March 16?
Security is a major concern today, and there are several measures being taken to make credit cards and debit cards more secure. In India, the banking regulators have decided to tighten the card security by bringing more measures. From March 16, the new cards will be only working in India.
If users want to use the cards outside India, they would need to request the banks for that facility. However, before this notification, by default, most banks issued cards that could be used anywhere in the world. Now many banks in the country are issuing cards on near field communication (NFC) technology, hence merchants don’t need to swipe at the PoS terminals as transactions take place (these cards are known as contactless cards). But, as per RBI, users need to request for this facility, as it is not enabled by default.
Intending to make cards more secure, banks are restricting transactions unless a customer specifically asks for it. The central banks have given the charge to the discretion on the issuers on how they want to deal with the existing cards. Based on the risk perception, banks also have the option to deactivate current cards and reissue them.
The cardholders will get the facility to set their transaction limits online. RBI asked banks to offer such facilities to customers on mobile banking, on the bank’s app, internet banking, ATMs, and other places. They also have the option to switch the cards on and off whenever required, just like the process of blocking and unblocking the card based on the needs. When users are going to an ATM for withdrawal, they will be able to unblock the card, use it and block it once again. Also, when users lose the card or when it is stolen, it cannot be misused as it would be switched off or blocked for use.
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