Blog Posts Business Management

NASSCOM’s Representation to RBI to defer and review the implementation of RBI Circular on ‘Enhancing Security of Card Transactions’

Blog: NASSCOM Official Blog


On 15 January 2020, the Reserve Bank of India (RBI) issued a circular on ‘Enhancing Security of Card Transactions’ (Circular). The circular mandates card issuers to: (a) issue cards which are enabled only for use at contact based points of usage (such as ATMs and POS devices) within India; (b) provide cardholders the facility to activate their cards for online (card  not  present  transactions (CNP)) and  contactless  transactions; and (c) disable existing credit and debit cards, which have never been used for online (CNP) / contactless transactions. 

The circular shall come into force from 30 September 2020.

Highlights NASSCOM’s Representation

This is a difficult period for the industry and there are many immediate issues, which needs to be taken care of. The industry is not in a position to put an appropriate framework in place, in order to comply with the norms provided in the Circular. We, therefore, requested RBI to provide immediate relief to the industry by extending the date of implementation of the Circular by six months.

  1. With restrictions being enforced, customers are likely to switch back to cash to avoid the process of applying for enablement of CNP transactions.
  2. As the Circular covers re-issuances, it would create high customer dissonance and inconvenience as he/she could have possibly set standing instructions per the previous card, which could fail for re-issued cards. These recurring transactions would fail due to the restrictions on online options.
  3. Customer inconvenience as they have to explicitly provide multiple inputs to enable all types of transactions via digital and/or analog channels. Same will need to be repeated every time a card is re-issued.
  1. While the Circular highlights the security features to be enabled by card issuers, it is unclear how this will be implemented. For instance, many banks have started sending special message to its customers informing that some services are being discontinued on September 30 on their credit and debit cards. The customers have been asked to register separately for international, online and contactless card transactions. However, no clear instructions to do so has been sent to customers. Therefore, we recommend a clear implementation process to be laid out by RBI
    which should be followed by all card issuers.
  2. Considering that there is already a limit of Rs 2000/- for contact-less cards without PIN/OTP, card issuers (including banks) may be permitted to issue the cards with contactless transaction facility enabled as default, as it is today.
  3. Customers should be allowed to exercise their discretion in enabling or disabling transaction options based on individual usage and risk assessment, rather than having these functionalities restricted by default.
  1. Reissuances & upgrade of cards – customers with recurring payments setup should be allowed to continue with online and contactless payments options. Card issuers should ensure that the instructions set by customers are carried forward as is in a replacement/re-issue scenario.
  2. Existing cards.
  3. While the Prepaid gift cards and mass transit cards are already excluded; the Forex cards, Purchase Cards and Virtual cards should also be excluded, as most of the cards issued are for the restricted and controlled usage.
  4. Corporate credit cards as the liability rests with the corporate.
  5. Co-brand cards issued through co-brand partner interfaces, where the co-brand partner is allowed to obtain consent from the new cardholders at the time of card issuance (within their application) and communicate the cardholder’s activation request / preference to the card issuer.

In case of further clarification, please write to




The post NASSCOM’s Representation to RBI to defer and review the implementation of RBI Circular on ‘Enhancing Security of Card Transactions’ appeared first on NASSCOM Community |The Official Community of Indian IT Industry.

Leave a Comment

Get the BPI Web Feed

Using the HTML code below, you can display this Business Process Incubator page content with the current filter and sorting inside your web site for FREE.

Copy/Paste this code in your website html code:

<iframe src="" frameborder="0" scrolling="auto" width="100%" height="700">

Customizing your BPI Web Feed

You can click on the Get the BPI Web Feed link on any of our page to create the best possible feed for your site. Here are a few tips to customize your BPI Web Feed.

Customizing the Content Filter
On any page, you can add filter criteria using the MORE FILTERS interface:

Customizing the Content Filter

Customizing the Content Sorting
Clicking on the sorting options will also change the way your BPI Web Feed will be ordered on your site:

Get the BPI Web Feed

Some integration examples