Impose monetary limit for overseas use of cards: RBI
The RBI has asked banks to fix a monetary limit for international transactions on credit and debit cards.More directives by the RBI:
- Banks should refrain from issuing cards with global access unless specifically sought by the customer.
- A monetary limit of $500 should be imposed by the issuing bank on all global cards which had not been used in the past.
- There should be a threshold limit for international usage for all active international cards issued by banks.
- Banks should evolve a system that enables implementation of additional factor of authentication for cards issued in India and used internationally to make electronic modes of payment such as RTGS, and NEFT safer.
- Banks should introduce a system to put a limit to number of beneficiaries that could be added in one day by each account.
Why all these steps are needed?
- The RBI has notified this following cyber attacks which have become more unpredictable and electronic payment systems becoming vulnerable to new types of misuse.
- These initiatives are needed to ensure that transactions effected through electronic channels are safe and secure and not easily amenable to fraudulent usage.