What changed
The Reserve Bank of India has issued new directions for payments banks regarding debit card issuance and conduct. These directions cover debit card issuance, co-branding arrangements, and general guidelines for debit cards. The directions also outline the requirements for board-approved policies and procedures.
What it means for you
The new directions aim to provide a framework for payments banks to issue and manage debit cards, ensuring customer protection and security. Banks must formulate comprehensive policies and procedures for debit card issuance, co-branding, and grievance redressal. This will help maintain consistency and transparency in debit card services.
What you must do
- Formulate comprehensive board-approved policies for debit card issuance
- Establish co-branding arrangements with clear guidelines
- Develop standard operating procedures for discretionary blocking or deactivating debit cards
- Implement a grievance redressal and compensation framework
Who it affects
Payments Banks, Debit Card Holders, Co-branding Partners
What is the effective date of the new directions?
The directions are effective immediately.
Do banks need prior approval from RBI to issue debit cards?
No, prior approval from RBI is not necessary for banks to issue debit cards.
What aspects must banks cover in their board-approved policies?
Banks must cover aspects such as debit card issuance, co-branding arrangements, and grievance redressal in their board-approved policies.