Warning; Your Debit, Credit Card will be blocked after March 16!

The Reserve Bank of India or RBI on Wednesday issued new rules for debit and credit cards to improve convenience and security. As per RBI’s new direction, all those Debit Card and Credit Card which are never used for online transactions, will soon set blocked, a move aimed at enhancing security for digital transactions.For instance, debit and credit cards can be blocked after March 16th, if they have not been used for any online payments ever.

The RBI on Wednesday has directed all banks and other card-issuing companies to disable online payment services of all debit and credit cards that have never been used for online/contactless transactions. RBI has also asked banks to allow only domestic card transactions at ATMs and PoS terminals in India at the time of issuance/reissuance of card.

These steps have been taken to safeguard the interests of millions of debit and credit card users in India, but at the same time, it can induce some widespread chaos and panic as well.Once blocked, the cardholder will need to reapply for a cashless payment feature on the debit/credit card. This blocking of debit/credit cards will begin after March 16th.