Reserve bank of India (RBI) has issued new rules for Debit card and Credit cards usage to reduce ‘Cyber Activities’ which actually restricts the users from international usage.
Due to security issues and direct usage of card, a huge amount of money is being lost every day, though in last couple of years this kind of activities has reduced but to strengthen security and to stop the misuse of Debit cards or Credit cards, RBI has announced new rules for new users as well as for Existing card holders.
#1 All new debit and credit cards to be issued only for domestic usage, cards for international usage will be EMV Chip and Pin enabled.(By June 30, 2013)
#2 All existing MagStripe cards will be converted to EMV Chip card by the Bank, who have used their cards internationally at least once. (By June 30, 2013)
#3 All the active Magstripe international cards should have threshold limit for international usage and the threshold should be determined by the banks based on the risk profile of the customer and accepted by the customer.(By June 30, 2013)
#4 Operational on IP (Internet Protocol) based solutions are mandatorily made to go through PCI-DSS and PA-DSS certification. (By June 30, 2013).
#5 Banks should provide easier methods (like SMS) for the customer to block his card and get a confirmation to that effect after blocking the card.
RBI also brings few more guidelines for electronic modes of payment like RTGS, NEFT and IMPS. New policy introduced by RBI will definitely help to reduce cyber problems on bank accounts but it will also restrict the users who actually pay huge money to purchase from international market.
Currently, debit cards are fully restricted for international usage but Credit cards were allowed to fulfill same purpose but now, after the activation of new rules which will be implemented by June 30, 2013, there might be a little hope for the Credit cards users in India.
For Full Details : Reserve Bank of India new rules for Electronic Payment Transactions