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Cards not used for online payments to be disabled across India, says RBI

Friday 24 January 2020 13:13 CET | News

The Reserve Bank of India (RBI) has asked banks and card issuers to disable online payment services of all credit and debit cards that have never been used for online/contactless transactions.

In a bid to enhance the security of cardholders, for existing cards, which have seen the online or card-not-present transactions, the banks have been directed to carry out a risk assessment and take a call on disabling them based on the risk perception, Deccan Herald reports.

The new rules will come into effect on 16 March 2020. Once their cards are disabled, cardholders will have to reapply for the services.

India has more than 800 million debit cards in circulation, while there are about 50 million credit cards adding on the government's attempts to digitise the economy. The central bank has advised card issuers to further activate cards only at contact-based points of usage.

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Keywords: India, RBI, card-not-present transaction, online payments, contactless transaction, cards
Categories: Payments & Commerce
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Countries: India
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Payments & Commerce