The Reserve Bank of India (RBI) has asked banks to impose a monetary limit for international transactions on credit and debit cards. It also asked them to refrain from issuing cards with global access unless specifically sought by the customer.
The RBI said that a monetary limit of $500 should be imposed by the issuing bank on all global cards which had not been used in the past.
“All the active magstripe international cards issued by banks should have threshold limit for international usage. The threshold should be determined by the banks based on the risk profile of the customer and accepted by the customer by June 30,” it said.
Till the time of completion of the process, a threshold limit not exceeding $500 could be put in place for all debit cards and all credit cards that had not been used for international transactions in the past, it said.
The notification has been issued following cyber attacks, which, according to RBI, have become “more unpredictable and electronic payment systems becoming vulnerable to new types of misuse.”
Besides introducing additional security features, the bank would be required to put in place a real-time fraud monitoring system. .
These initiatives, the RBI said. were needed to ensure that transactions effected through such channels were safe and secure and not easily amenable to fraudulent usage.
The RBI also said: “Banks should move towards a system that facilitates implementation of additional factor of authentication for cards issued in India and used internationally (transactions acquired by banks located abroad),” it said.
To make electronic modes of payment such as RTGS, and NEFT safer , the central bank asked banks to put a limit on the number of beneficiaries that could be added in one day by each account. A system of alert could be introduced when a beneficiary was added, it added. —PTI