Today every person who has debit or credit card is afraid of fraud. The concern is real as fraud is increasing day by day in spite of all preventive efforts. often online and card fraud arise from the other countries as there is no requirement of OTP or PIN for the card payment.
But now the RBI has come with an effective resolution. According to the new rule of RBI, you can set the limit and usage of your cards. Definitely, it will be helpful to minimise the frauds.
Thus in this post, I will tell you what are the new guidelines of RBI? How it will work and what will be the benefits of it?
1. Why Should You Limit Card Usage?
Now a days, card-less transactions are very popular. But no one can deny the importance of physical card. You use your card in different uses like ATM withdrawal, money transfer, POS transactions and of course online transactions.
But with the wider scope, the chance of fraud increases. That is why some people want to use their card only for the cash withdrawal or payment at shops. But by default most of the cards give you the facility of online transaction and international payments as well. This facility exposes their card for the fraud.
To deal with this situation the RBI has given you the facility to fix the usage and limit of your card. This facility is a big relief to the concerned people.
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2. What is RBI Guideline on Card usage?
To prevent the card based frauds, RBI has issued its new guidelines to all banks. This is to control the unlimited and unsafe usage of the card. The new rule is applicable since 16 March 2020.
Limited Use of the New Card
Now the new debit and credit card would come with the limited facility. You would not be able to use it for online transaction and international usage. Thus the new card can be used only for ATM transaction and Point of Sale (POS) transaction.
However, it will not block the card for online shopping or international payment permanently. You can avail these benefits as well. But only on your demand. Earlier these benefits were available automatically on your card.
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Rule for the Existing Debit and Credit Card
The new cards would have limited usage but what about the existing card. As they are open for all types of transactions?
The RBI has also instructed new guidelines for the existing cards. Now Banks will decide the online and international usage of the cards as per the risk perception of the customers.
Moreover, if you have not used your card for online or international usage till now, these services will be deactivated from your card.
You can Set the Limit of Your Card
Yes, now you can decide the limit and services on your card. The services which you do not want can be deactivated from the card.
- You may decide the usage of your card in ATMs and POS centres within India.
- You can switch on and switch off the online transaction facility whenever you want.
- Same as online, you can also decide the international usage of your card.
- Moreover, you may decide the limit of the transaction value as well. For example, if you want to set the limit of online transaction value on ₹20000 only, you may. Then you will not be able to transact more than this amount. But if you want more than this, you would have to reset the limit.
Facility to Set the Limit
RBI has instructed the banks to provide the facility of setting the limit round the clock and every day.
The banks would have to provide this facility through the Net Banking, Mobile Banking Apps, IVR and also in ATMs. Moreover, you can avail this facility through the bank branches as well.
In addition, if there is any change in the status of the card limit, banks would have to inform you immediately. This information may be through an SMS or Email.
How to Set Limit?
Before the new guidelines of RBI, some banks are already providing the facility of limit and usage. For example, SBI is giving this facility through its Net Banking portal, SMS and Mobile App.
Moreover, ICICI Bank is facilitating its customers through the iMobile App and Net Banking portal.
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Set the Limit Through SBI Net Banking
If you are using the SBI Net Banking facility, follow some steps to set the limit of your card. Firstly, login with your user ID and password. Then on the dashboard, click on the e-Services tab. Here you can see different types of services on this page. Now click on ATM card Limit/ Channel/ Usage Change option.
On the next page, you can see the number of your all SBI cards. Select the one for which you want to set the limit. For this, you would have to click the Radio button of your account. Now select the service, which you want to change.
Switch Off the International Usage
If you want to switch off the international usage of your card, then select the Usage type. On the next page, you may switch off the international usage.
Set the Transaction Limit
But if you want to set the transaction limit, select the Daily Limit option. Now tap on submit.
After submitting, on the next page you can see two options. First, the ATM limit and second the POS CNP limit.
1. As you know POS means Point of Sale. It means payment at the shops through the swiping of the card.
2. And CNP means Card Not Present i.e. the Online Payment where there is no requirement of the physical card.
Thus in this way, you can set the transaction limits of both. This is a daily limit. Hence once you set the limit, you may not transact more than this in a day.
Block Any Service
If you want to block any option among ATM, Point of Sale or Card Not Present, you can do it. For this, you would have to select the option of Change Channel Type. There are three channels. You may activate or deactivate any of them.
Hence this is the method to set the limit and usage of your SBI card.
Set the Limit Through the iMobile App of ICICI Bank
Now see how you can set the limit of your ICICI card. You may do it through the iMobile App of ICICI bank. It is simpler than SBI.
Open the iMobile App. You can see your bank account number on the home page. Below it there are three options. Select the Manage option.
On the next page, you can see the option to set the limit and usage of your ATM card. Here you may change the limit for the domestic transaction or international transaction. Moreover, you may change for both the transactions as well.
Thus in this way, you may set the limit and usage of your ICICI card. Because of the increasing frauds, you must use this facility to protect your money.
Moreover, you should keep active your card only for ATM and POS transactions. It will make your card more secure. Whenever required, you can switch on the international and online transaction for the limited period.