Banks Need No Rbi Nod For Online Debit Cards

Banks will not be required to seek the approval from the Reserve Bank of India (RBI) for introducing online debit cards, where straight-through-processing is done. They are allowed to launch the debit cards with the approval of their respective boards. However, they will be required to forward a copy of the agenda-note put up to their board and the resolution passed to the RBI.

In the case of offline debit cards, banks will be required to obtain prior approval of the apex bank. They are also required to submit details on mode of authorisation and settlement, authentication method employed, technology used, tie-ups with other agencies and service providers, etc to the central bank.

The RBI has removed the stipulation of minimum net-worth of Rs 100 crore for introduction of online debit cards. However, the criterion should be adhered to by the banks in the case of offline debit cards.

Earlier, the central bank had told the banks that they need not take its approval for the issue of debit cards and were only required to submit a copy of the agenda-note put up to the board and the resolution passed thereon giving details of the product. Subsequently, the banks were further asked that the banks with minimum net-worth of Rs 100 crore should only issue debit cards.