Debit, credit card alert! This feature to be discontinued from March 16

In a big news for Debit card and Credit card users, the Reserve Bank of India has issued a notification stating that by March 16, 2020, credit or debit cards from which no online or contactless transactions were made, will be discontinued. Which means the services for debit or credit card holders who have not made any contactless transactions or online transactions, will automatically shut down from March 16.

So if you want this feature to be enabled on your debit or credit card, then you need to make an online transaction with your card before March 16th. Also, the contractless transaction has to be done before this date.

What is contactless transaction?
The transactions without a password in a POS machine are called contractless transactions. Contactless payment is a method for the consumers to purchase products or services using a debit, credit, or smartcard by using RFID technology or near-field communication (NFC).

In which they the user needs to just tap the debit/credit card near a point-of-sale terminal that is equipped with POS machine. Contactless payments do not require a signature or a personal identification number (PIN) to be entered on the machine. 

The allowable amount for a contactless transaction is up to Rs 2000 without entering the PIN to the machine.

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In the year 2015, the Reserve Bank issued a notification regarding this, stating that no pins will be required for transactions below 2000. This feature is available on almost every card.