OTHER GROUP COMPANIES
market

RBI frames policy to prevent misuse of credit cards

The policy includes the requirement of additional factor of authentication for online transactions, online alerts for all types of card transactions irrespective of the amount, mandatory pin validation after every successive transaction at ATMs

April 30, 2012 12:24 IST | India Infoline News Service

To prevent the misuse of credit cards, the Reserve Bank of India (RBI) has framed a separate policy, the government said on 27th April.

“The RBI has framed separate policy for curbing the misuse of credit cards,” the Minister of State for Finance, Namo Narain Meena said in written reply to Lok Sabha. He further added, “The policy includes the requirement of additional factor of authentication for online transactions/interactive voice response (IVR) transaction, online alerts to the customers for all types of card transaction at all channels irrespective of the amount, mandatory pin validation after every successive transaction at ATMs.”

The RBI had issued the guidelines for mobile banking transactions in October 2008 which permitted the banks to provide these transactions. The guidelines also permitted the banks to extend this facility through their business correspondents (BCs).Complaints/grievances arising out of mobile banking facility were also covered under the Banking Ombudsman Scheme of RBI. However, in May 2011, the mobile banking guidelines were further relaxed to permit mobile banking transactions without end-to-end encryption up to Rs 5,000 and in December 2011 the transaction limit was increased up to Rs 50,000 for each customer per day.

Invest wise with Expert advice

FEATURED ARTICLE

BLOGS

Open Demat Account

Invest wise with Expert advice

By continuing, I accept the Terms & Conditions and agree to receive updates on Whatsapp