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What are the new rules for debit and credit card?

What are the new rules for debit and credit card?

Details on RBI’s new rules for debit cards and credit cards from 1 October: – Customers will have the liberty or facility to cancel, view, or modify any standing instructions set on their card. – Customers will receive a pre-debit notification 24 hours prior to the debit.

What is the new rule of RBI?

Under this new system, for any transaction of more than ₹ 5,000, banks will send onetime passwords (OTPs) to customers. Those recurring transactions on a customer’s credit or debit card, which don’t comply to this new rule, will now be declined by banks, as this system has now become applicable since October 1, 2021.

What is the new bank rules?

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According to the new rule, which comes into effect from October 1, 2021, the bank will have to notify customers 24 hours before any auto-debit payment. The money will be debited from the customer’s account only upon confirmation. A notification can also be sent to customers by SMS or e-mail.

Is ATM card mandatory?

Debit card or ATM card details have been made mandatory to register for an internet banking to ensure a secured transaction. However, this layer of security is not mandated by all the banks as OTP has been an effective method. After registering for internet banking, the requirement of a debit card is minimal.

When can I use my new debit card?

You don’t need to activate your new debit card when you receive it – it’ll be ready to use straightaway. If you want to make a contactless payment, you’ll need to do a chip-and-PIN transaction first.

What are the RBI rules?

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Under the new rules, customers can conduct five free transactions, both financial and non-financial, from ATMs of their banks. For other banks, they will be allowed to make three transactions for free in metro centres and five transactions without charges in non-metro centres.

What is auto debit rules?

The Reserve Bank of India’s new rules on recurring payments from October 1 are for one-time instructions on debit and credit cards. Customers’ bank sends pre-debit notification 24 hours before the automatic payment. Recurring payments above Rs 5000 can only be done with OTP before debit.

What are the restrictions on current account?

RBI has said that borrower with exposure over ₹5 crore can maintain current accounts with any one of the banks with which it has CC/OD facility, provided that the bank has at least 10\% of the exposure of the banking system to that borrower.

What is e-mandate on card?

E-mandate is a standing instruction or recurring payment instruction on a debit or credit card given by cardholder on a merchant platform like a website or mobile application for recurring transactions e.g. E-mandate set at telecom service provider, OTT platforms, insurance partners and other utility service providers …

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Which regulation governs guidelines for debit cards?

No cash transactions through the debit cards should be offered at the Point of Sale under any facility without prior authorization of Reserve Bank of India under Section 23 of the Banking Regulation Act, 1949.

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