RBI tightens norms for online credit card use

The Reserve Bank of India has asked banks to provide additional information to customers on the usage of cards from August 1 this year in a bid to enhance security in online credit and debit card transactions. The central bank has asked banks for providing additional information for 'card not present' transactions to customers. 'Card not present' transactions are deals where neither the card nor its holder are present at the point of sale - i.e. use of cards in internet transactions. It said there should be a system of providing for additional authentication/validation based on information not visible on the cards for all online 'card not present' transactions, except IVR transactions. The RBI has also asked banks to give online alerts to customers.