Monday, September 26, 2022
HomeBankingBankingDebit, credit cards rules to change after September 30: All you need...

Debit, credit cards rules to change after September 30: All you need to know about it

- Advertisement -

If a credit card is issued to a person who has not gone through the application process, then the issuer bank will face a double penalty.

- Advertisement -

New Delhi: The Reserve Bank of India (RBI) had extended its deadline to September 30 and asked banks and NBFCs issuing credit and debit cards to comply with certain norms including activation of cards without the consent of customers. From July 1, the banks and non-banking financial companies (NBFCs) were to implement the direction on ‘Credit Card and Debit Card Issuance and Conduct Directions, 2022’. But now, the RBI has decided to extend the timeline for implementation of certain provisions of its direction to October 1, 2022. One of the provisions in the direction is regarding the activation of the credit card.

Changes from October 1

According to the direction of the RBI, the bank or institution issuing the card must seek One Time Password (OTP)-based consent from the cardholder for activating a credit card, in case the card has not been activated by the customer for more than 30 days from the date of issuance.

As per RBI mandate, all credit and debit card data used in online, point-of-sale, and in-app transactions be replaced with unique tokens by September 30.

- Advertisement -
RELATED ARTICLES