As per RBI notification, Online transaction facility may be discontinued for certain types of debit and credit cards after 16th March. This is important for users who may need debit and credit cards for online transactions in the future. RBI has issued a notification in past in this regard and had set a deadline of March 16, 2020.
As per an RBI notification, an online transaction facility may be discontinued for those debit and credit cards, which have not been used for any online transaction after initiation of the cards. Even a single online transaction after initiation of the card before 16th March may save the online transaction facility of cards. RBI has taken this step to protect users from online frauds. If users want to continue with the online transaction facility of their debit or credit card then they need to use their card(s) for online transactions, at least once before 16th March 2020.
RBI has also advised users to use contact technology for cards. Using contactless technology for transactions, users don’t need to swipe the card. Besides, contactless technology also provides facilities such as turning on or off features like domestic, international and POS transactions. Also, the limit of ATM withdrawal may be changed using contactless technology. This technology empowers users to deactivate or activate their cards by themselves. Also, the users will get a notification on their registered mobile number, in case of any change in their privacy or user settings. Contactless technology needs debit and credit cards to use an EMV chip instead of the magnetic strip provided in old cards. Banks have started providing new cards with EMV chips.