RBI issues instructions to PPI issuers for Enhancing Security of Card Transactions
The Reserve Bank of India in its endeavor to improve the security of card-based transactions (debit cards/credit cards) has issued certain instructions for PPI issuers which are as under: (This will come into effect from March 16, 2020)
- At the time of issue / re-issue, all cards (physical and virtual) shall be enabled for use only at contact-based points of usage [viz. ATMs and Point of Sale (PoS) devices] within India. (In simple language- Jo new cards issue honge from March 16, 2020, un cards me by default sirf India me payment ki ja sakegi and contact based payment ki ja sakegi aur card not present transaction (like online transaction) nahi ki ja sakegi. Isko open karne k liye PPI issuer ko request krni padegi)
- For existing cards, the issuer may take the decision regarding whether to disable the card not present (domestic and international) transactions, card-present (international) transactions and contactless transaction rights based on the risk perception. (In simple language- Jo cards already issued hai us case me, card issuer pe depend karta hai ki wo customers k previous spendings aur risk ko dekhte hue ye decision le ki, kya usse international payment by default allow krni hai ya nahi, aur card not present payment by default allow karni hai ya nahi. Is case me bhi, user apni marzi se baad me cheeze change karwa sakta hai.)
- While existing cards that have never been used for online (card not present) / international / contactless transactions shall be mandatorily disabled for this purpose. (In simple language- Jo cards already issued hai us case me agar user ne aaj tak koi online/international/ transactions nahi kiye hai to by default ye facility unke card me deactivated rahegi, jo ki customer request karke on karwa sakta hai.)
Additionally, the issuers shall provide to all cardholders:
- facility to switch on / off and set / 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.;
- the above facility on a 24×7 basis through multiple channels – mobile application / internet banking / ATMs / Interactive Voice Response (IVR); this may also be offered at branches / offices;
- alerts / information / status, etc., through SMS / e-mail, as and when there is any change in status of the card.
This instruction is not mandatory for prepaid gift cards and those used at mass transit systems.
Points to remember:
- RBI has advised PPI issuers to (which one is correct type question may come)?- switch on / off and set / modify transaction limits
- The instruction set by RBI to PPI issuer toswitch on / off cards will not be applicable on which type of card?- Prepaid Gift Card.