16 January, 2020
3 Min Read
Syllabus subtopic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.
Prelims and Mains focus: about the RBI’s move and its significance; frauds in transactions from credit/debit card and attempts to address them
News: Tightening the rules for credit and debit card issuance and use in the wake of rising frauds related to card transactions, the Reserve Bank of India (RBI) on Wednesday asked banks to allow only domestic card transactions at ATMs and point of sale (PoS) terminals in India at the time of issuance or reissuance of a card.
Banks are now issuing international debit cards to most of their customers, thereby increasing the risk of frauds.
Changes in the usage norms
The new rules will improve user convenience and increase the security of card transactions.
About Merchant Discount Rate (MDR)
Source: Indian Express
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