The Reserve Bank of India (RBI) has made some important changes to the rules for debit and credit cards in India. These changes are designed to improve the security of card transactions and to give cardholders more choice.
What are the new rules for debit and credit card?
One of the most important changes is the introduction of tokenization. Tokenization is a process that replaces sensitive card information, such as the card number and CVV, with a unique token. This token is then used to make online payments, and it cannot be used to access the cardholder’s account.
Another important change is the introduction of card portability. Card portability allows cardholders to switch to a different card network without having to change their card number. This gives cardholders more choice and makes it easier to switch to a network that offers better benefits.
The RBI has also made some changes to the rules for cash withdrawals using debit cards. These changes are designed to reduce the risk of fraud. For example, the maximum amount that can be withdrawn from an ATM in a single transaction has been reduced from ₹25,000 to ₹2,000.
The new rules for debit and credit cards will come into effect on October 1, 2023. Cardholders should start preparing for these changes now by updating their payment information with merchants and service providers.
Here is a summary of the key changes
Tokenization: Sensitive card information will be replaced with unique tokens. This will make it more difficult for fraudsters to steal card data.
Card portability: Cardholders will be able to switch to a different card network without having to change their card number. This will give them more choice and make it easier to switch to a network that offers better benefits.
Reduced cash withdrawal limits, The maximum amount that can be withdrawn from an ATM in a single transaction has been reduced from ₹25,000 to ₹2,000. This will reduce the risk of fraud.
These changes are a welcome step towards improving the security of card transactions in India. Cardholders should take advantage of these changes to protect their financial information.
