Limit global transactions of cards, RBI tells banks
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.
"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.