– The Reserve Bank of India (RBI) has issued new guidelines for credit and debit card companies to enhance security and reduce fraud.

The guidelines require card issuers to allow customers to set transaction limits, enable or disable cards for online transactions, and report any unauthorized transactions within 24 hours.

Card issuers must also provide customers with the option to switch on or off contactless payments and set limits for such transactions.

– The RBI has also mandated the use of "tokenization" for card transactions, which replaces sensitive card information with a unique digital identifier to prevent fraud.

– The guidelines also require card issuers to provide customers with real-time alerts for all transactions, including those made through mobile wallets and other payment apps.

– The new rules will come into effect from October 1, 2021, and will apply to all new and existing credit and debit cards.

– The RBI has stated that the new guidelines are aimed at enhancing customer convenience and security, and reducing the risk of fraud and unauthorized transactions.