Reserve Bank of India
DPSS. CO. PD 2224/02.14.003/2010-2011
March 29, 2011
The Chairman and Managing Director/Chief Executive Officers
All Scheduled Commercial Banks including RRBs/
Union Co-operative Banks/ State Co-operative Banks/
District Central Co-operative Banks
Security Issues and Risk mitigation measures- Online alerts to the cardholder for usage of credit/debit cards.
Attention of banks is invited to our circular RBI/2008-2009/387-RBI/DPSS. No. 1501/02.14.003/2008-2009 dated February 18, 2009, in terms of which banks were mandated to send online alerts to the cardholders for all Card Not present (CNP) transactions for the value of ` 5000/- and above. This measure has been generally welcomed by customers, which enabled them to take prompt action if the card is misused. This measure goes a long way in arresting further perpetration of such fraudulent transactions.
2. Recently, incidents of unauthorized /fraudulent withdrawals at ATMs have come to the notice of RBI. It is important to arrest the incidents of such frauds in order to further encourage card based transactions in the country where the use of credit/debit cards plays an important role.
3. It is therefore decided that banks make take steps to put in place a system of online alerts for all types of transactions irrespective of the amount, involving usage of cards at various channels. This measure is expected to encourage further usage of cards at various delivery channels. Banks may implement this measure latest by June 30, 2011.
4. Please acknowledge receipt.
Chief General Manager