What changed
RBI has issued directions for local area banks on debit card issuance, conduct, and co-branding arrangements. The directions cover general and conduct regulations relating to debit cards, including co-branded debit cards.
What it means for you
These directions are applicable to local area banks and cover aspects such as debit card issuance, co-branding arrangements, standard operating procedures, and redressal of grievances. Banks must formulate comprehensive policies and procedures with the approval of their Board.
What you must do
- Formulate comprehensive policies and procedures with Board approval
- Issue debit cards in accordance with the Board-approved policy
- Implement standard operating procedures for discretionary blocking/deactivating/suspending debit cards
- Establish a redressal of grievances and compensation framework
Who it affects
Local Area Banks, Cardholders, Card-issuers, Co-branding entities
What are the key aspects covered in the RBI directions for local area banks?
Debit card issuance, co-branding arrangements, standard operating procedures, and redressal of grievances.
Do banks need prior approval from RBI for issuing debit cards?
No, prior approval from RBI is not necessary for banks to issue debit cards.