The Reserve Bank of India (RBI) has asked to lending banks to consider to issue debit cards with printed customer's photograph in order to prevent the misuse of stolen cards and other fraudulent to the customers.
Issuing a guideline to banks for issuing debit cards, the master bank said in a release, "With a view to reducing the instances of misuse of lost/stolen cards, banks may consider issuing cards with photographs of the cardholder or any other advanced methods that may evolve from time to time."
RBI has also asked banks to not to issue offline debit cards anymore and to stop such operations in the next six months.
"Banks which are issuing offline debit cards may conduct a review of their offline debit card operations and discontinue operations of such cards within a period of six months.
"Banks may issue only online debit cards, including co-branded debit cards, where there is an immediate debit to the customers' account, and where straight-through processing is involved," RBI said.
RBI has also suggested to the customers to immediately inform their pertaining banks that have issued the cards.
The customers will have to bear the loss of the card until they notify it to the banks, stated RBI.
"The cardholder shall bear the loss sustained up to the time of notification to the bank of any loss, theft or copying of the card but only up to a certain limit (of fixed amount or a percentage of the transaction agreed upon in advance between the cardholder and the bank), except where the cardholder acted fraudulently, knowingly or with extreme negligence."
RBI has also allowed banks to issue co-branded debit cards to the customers without seeking the prior approval of the apex bank.
--With Agencies Inputs--
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