Limit global transactions of cards, RBI tells banks - Hindustan Times
close_game
close_game

Limit global transactions of cards, RBI tells banks

Hindustan Times | By, Mumbai
Mar 01, 2013 09:04 PM IST

In a move aimed at cracking down credit and debit card frauds, the Reserve Bank of India (RBI) on Friday asked banks to impose a monetary limit of $500 (R27,450) for international transactions on cards that have already been issued but not been used for such deals in the past. HT reports.

In a move aimed at cracking down credit and debit card frauds, the Reserve Bank of India (RBI) on Friday asked banks to impose a monetary limit of $500 (R27,450) for international transactions on cards that have already been issued but not been used for such deals in the past.

The RBI has also asked banks to refrain from issuing cards with global access unless specifically sought by the customer.

Hindustan Times - your fastest source for breaking news! Read now.

"All the active magstripe international cards issued by banks should have a threshold limit for international usage. The threshold should be determined by banks based on the risk profile of the customer and accepted by the customer by June 30," the RBI said in a notification.

Besides introducing extra security features in cards, the bank would also be required to put in place a real-time fraud monitoring system and a mechanism to ensure that cards can be blocked if an SMS is sent by the cardholder.

"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," the RBI said.

The notification comes in the backdrop of recent card frauds where unauthorised sums were withdrawed by unscrupulous agents. "With cyber-attacks becoming more unpredictable and electronic payment systems becoming vulnerable to new types of misuse, it is imperative that banks introduce certain minimum checks and balances to minimise the impact of such attacks and arrest/minimise the damage," the RBI said.

The initiatives, the regulator said, are needed to ensure that transactions effected through such channels are safe and secure and not easily amenable to fraudulent usage.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On