All You Need to Know About RBI’s New Rules for Debit and Credit Cards

With the push towards digital payments, there has been a significant rise in the volume and value of card transactions across the country, especially in recent years. To curb the growing incidence of cyber fraud, the Reserve Bank of India (RBI) issued a new set of rules for debit and credit cards in January 2020. These measures aim to prevent misuse while enhancing transaction security, user safety, and convenience.

So, here are the new RBI rules for debit and credit cards and this is how they affect users:

Only Domestic Card Transactions are Applicable

The RBI has directed card issuers to allow only domestic transactions at ATMs and Point of Sale (PoS) terminals in India at the time of card issuance or re-issuance. This means that debit or credit cards issued after March 16, 2020, can be used only for cash withdrawals at domestic ATMs or swipes at PoS terminals within India by default.

Setting Up Additional Services Separately

If you wish to use additional features on cards issued after March 16, 2020—such as international transactions, online payments for e-commerce, recurring payments, or contactless transactions—you must activate these services separately. Activation can be done via mobile banking apps, internet banking, or by contacting or visiting your bank branch.

Existing Cardholders Need to Enable Services

For cards issued before March 16, 2020, if services such as online, international, contactless, or card-not-present transactions have not been used, they will be blocked by default. Cardholders must contact their bank to enable these services. HDFC Bank debit and credit card users can activate these features through NetBanking.

Set Transaction Limits

The RBI allows cardholders to set transaction limits within the overall card limit for both domestic and international usage. This applies to PoS purchases, ATM withdrawals, online transactions, and contactless payments. HDFC Bank cardholders can manage these limits 24/7 through Mobile Banking, NetBanking, ATMs, or by visiting a branch.

Receive Notification from The Bank

To ensure transparency, banks will notify customers via SMS or email about any changes to their card status, including the activation or deactivation of services. This helps users stay informed and avoid disruptions in card usage. 

It is important to note that these rules do not apply to prepaid gift cards or cards used for mass transit systems. Overall, the implementation of these safety measures strengthens the security of card transactions while protecting users’ money and personal data. Explore HDFC Bank Credit Cards to enjoy advanced security features, flexible controls, and seamless digital banking designed to keep your transactions safe and convenient.

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.