The Reserve Bank of India has asked banks to put in place a system for providing online alerts for all card transactions irrespective of amount. Until now banks had to send online alerts to the cardholders for only ‘Card Not present’ (CNP) transactions which were for the value of Rs 5,000 and above. Taking note of unauthorized or fraudulent withdrawals from ATMs, RBI has said that banks must implement by June 30 a system of instant alerts for all types of transactions irrespective of the amount, involving usage of cards at various channels.
“This measure is expected to encourage further usage of cards at various delivery channels” an RBI circular said.
In a circular to all banks, RBI said that it has been informed of unauthorized or fraudulent withdrawals from ATMs.
“It is important to arrest the incidents of such frauds in order to further encourage card based transactions in the country where the use of credit/debit cards plays an important role” the central banks said.
RBI has said that banks must implement by June 30, 2011 a system of instant alerts for all types of transactions irrespective of the amount, involving usage of cards at various channels. “This measure is expected to encourage further usage of cards at various delivery channels” it said.
February `09, RBI had asked banks to send online alerts to cardholders either through SMS or email where the card was used for transaction above Rs 5000. At that time these alerts were required for only those transactions where the card was not present such online purchases or over the telephone. “This measure has been generally welcomed by customers as it enabled them to take prompt action if the card is misused. This measure goes a long way in arresting further perpetration of such fraudulent transactions” RBI said in its circular.
Earlier this year RBI sought to make `card not present’ transactions more secure by insisting that banks ask for an additional password in addition to the credit card number and the CVV number printed on the back of the card. The additional security feature came into effect from last month.