RBIs new Credit and Debit card changes that have come into effect from October 1 st 2020. These new rules are designed to make digital payments more secure for users.

1) All new credit and debit cards issued by the banks will now only be allowed for domestic
transactions at ATMs and point of sale.
So what does this mean? It means that banks now
will not unnecessarily give international transaction access to all customers by default. If the
customer needs such access they will have to ask the bank to activate the same for their
cards. This change will surely help curb fraudulent transactions that most often happen on
international transactions.


2) All the debit card and credit card users from now on will be allowed to decide and set up
their own transaction limits.
Many international e-commerce websites neither ask for a CVV
pin nor ask for a one-time-password (OTP) to confirm the transaction. This new change is
beneficial and if one sets a spending limit, misuse of cards will get limited. 


3) The cardholders similarly will now be able to decide what services they would like enabled on their card and what they do not wish to have Eg such as many may not want an
ATM feature on their credit card, POS, E-Commerce or NFC, etc.
This feature will allow card users to set a limit on transactions through various
modes—ATM, POS, and thereby reduce the risk of fraud. But as a cardholder one may just
need to sit down and plan usage points like POS or e-commerce, ATM, etc and set limits
across different cards so that they do not face any difficulty at times of need.


4) The other big step is that RBI has asked all banks to disable online payment for all debit,
credit cards that have never been used for online or for contactless transactions in India or
abroad
. In my opinion, they should have given some deadline here after which the same
would get deactivated. Also, note that the card limits or any restrictions that a cardholder decides for his credit or debit cards can be changed any time through the mobile app or net banking or by
contacting the bank. These changes are not applicable to prepaid cards and gift cards.

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