New Delhi: New credit card rules are set to be implemented from October 1. Reserve Bank of India (RBI) has issued new credit rules in April 2022. Here are three changes you are going to see regarding credit card from October 1. These rules are credit card limit permission, credit card tokenisation, and card-issuer to seek one time password. Have a look at them in the details below.
1. Credit card limit Permission
Now credit card issuers can’t increase the credit card limit of a customer at their own discretion. It must be approved by the card holder and to be notified once it’s been done.
Earlier, holders only receive messages regarding credit limit increases. No permission was asked before hiking the limit. After October 1, 2022, it becomes very stringent to not increase the credit line limit without the cardholder’s written consent.
2. Credit Card Tokenisation
Earlier, third-party payment apps use credit and debit card numbers, the holders’ name, and CVVs to make payments from banks to the platforms. RBI has come up with card tokenisation system to make such transactions safe and secure by encrypting the credit card numbers.
Now third-party payment apps can’t simply use customers’ credit card numbers for transactions. Every credit card number will be encrypted into the token number that will be used for transaction purpose.
The rule is going to be mandatory from October 1.
3. Card-issuers to seek One Time Password (OTP)
Credit card issuers have to first obtain one-time-password (OTP) based consent if a cardholder hasn’t activated their card for more than 30 days from the issued date. The credit card issuer must deactivate the card without charging any extra fee within seven working days in case the card holder declines the request to activate the card.