The new debit and credit card rules to improve protection and to reduce fraud kick in on 16 March. RBI had released new rules in January to boost the consumer experience and enhance card transaction protection. Now, at the time the card was issued/reissued it directed banks to allow only domestic card transactions at ATMs and PoS terminals in India. Customers would have to individually set up their accounts for international transactions, electronic purchases, and contactless transactions.
Prime Minister Narendra Modi launched a campaign for the distribution of Kisan credit cards (KCC) in Uttar Pradesh. As part of the campaign, more than 25 lakh PM Kisan beneficiaries across the country received KCC. The KCC provides short term loans of up to 3 lakhs to farmers at an interest rate of 4% provided the payment is made timely. Apart from cheap credit, the crop will also be insured by the crop insurance scheme. Also, collateral security has been waived up to Rs 1.6 lakh.
For the benefit of bank account holders, the banking regulator RBI has come out with clarifications on free ATM transactions. Here are five transactions that can’t be counted in the free transactions provided by the bank. 1) Failed transactions because of technical reasons like hardware or software 2) Declined transactions due non-availability of currency notes 3) Invalid PIN or other validations 4) Transactions that are attributable of bank or service provider 5) Non-cash withdrawal transactions at ATMs such as balance enquiry, cheque book request, payment of taxes, fund transfers.
RBI has extended the customer transactions timing for RTGS system by an hour to 7 am from 26 Aug. The RTGS system is primarily meant for high-value transactions with minimum amount to be remitted is Rs.2 lakh and no maximum limit. Earlier this month, the RBI had decided to allow round-the-clock fund transfers through NEFT from December which is currently available from 8 am to 7 pm on all working days. Government and the banking regulator have been trying to incentivise digital payments with a vision to make India a ‘less-cash’ society.
The government’s real-time payments system Unified Payments Interface (UPI) has continued to grow in terms of number and value of transactions and is expected to dominate 59% of the total payments by 2024-25, thereby reducing the role of cash. It is being reported that the change in the payments landscape is a result of innovation coupled with the government and the banking regulator’s attempt to move to a ‘less-cash economy’. The report further said that ATM transactions which are highest currently will get reduced to 5% of total transactions over next few years.
The age of multiple bank accounts as a way to hide from the taxman is long over and therefore, it makes no sense to have so many of them. In this electronic age, PAN is an adequate marker to link accounts across banks, should the taxman decide to investigate. In any case, credit information bureaus are already linking loans across banks using the PAN. Other reasons why you should consolidate bank accounts 1) Minimum balance needs to be maintained. 2) Bank charges such as debit cards, SMS alerts, ATM use etc. 3) Ease of tax filling. 4) Avoid misuse.
With air travel becoming common, a facility which is highly sought after frequent travellers is airport lounge access. And what could be better if it comes free with your debit card! But remember not all cards have similar benefits, so choose one that suits your domestic travel pattern and which all airport lounges are covered. Some debit cards come with only complimentary access that waives of $99 annual membership fees, while others provide a free usage as well. Mastercard charges Rs.25 authorisation fees, which is later reversed, Visa charges Rs.2 for such validation.
Is the debit card nearing the end of its journey? SBI Chairman Rajnish Kumar said the bank believes that removing debit cards would pave way for more digital payment solutions. However, bank heavily rely on debit card transactions right now. Currently there are 90 crore debit cards in the country, while there are only 3 crore credit cards. Bank has planned to set-up 1 Million Yono cashpoints over next 18 months that will enable customers to withdraw cash at ATMs or make transactions without a debit card.
Travelling can often prove to be an exhausting affair in itself. Add to it, hours of waiting at crowded airports, barely able to find a comfortable spot to sit, the never-ending announcements, the flurry of people running around and you have the recipe for a disastrous experience. So, what it’s the way out of this ordeal? A perfect Credit Card that come with complimentary lounge access. Apply for one of these cards get free Priority Pass Membership. HDFC Regalia Card, SBI Elite Card, American Express Platinum Travel Card, Axis Bank Vistara Infinite Card, ICICI Bank Sapphiro Card.
A telecaller posing as a bank officer duped a 34-year-old woman from Pune of Rs 1.47 lakh after luring her with Rs.5000 gift voucher to reveal her credit card details. Though RBI has done a commendable job but credit card fraud is a harsh reality of digital age. So some basic steps can help you avoid misuse of credit card. Set international limit. Enable SMS alerts & OTP for IVR based transactions. Set 2 level authentication for online transactions, avoid making international transactions or using card on public computer. Lastly never store information online.