RBI asks banks to consider issuing debt cards with photograph

"With a view to reducing the instances of misuse of lost/stolen cards, banks may consider issuing cards with photographs of the cardholder or any other advanced methods that may evolve from time to time," the RBI said while issuing guidelines for issuance of debit cards.

The guidelines were issued after a comprehensive review of existing instructions on issue of debit cards. There are over 31 crore debit cards in the country.

The RBI said the bank would be responsible for direct losses incurred by a cardholder due to a system malfunctions directly within the bank's control.

However, the bank shall not be held liable for any loss caused by a technical breakdown of the payment system if the breakdown of the system was recognisable, the guidelines said.

The responsibility of the bank for the non-execution or defective execution of the transaction is limited to the principal sum and the loss of interest, it added.

Banks have also been asked to ensure full security of the debit card. The losses incurred by any party on account of breach of security or failure of the security mechanism would be borne by the bank, RBI said.

The RBI further said that "each bank shall provide means whereby his customers may at any time of the day or night notify the loss, theft or copying of their payment devices".

After receiving complaint of loss, theft or copying of the card, the bank should take all action to stop any further use of the card, RBI said. It asked banks to put in place an effective mechanism for redressal of customer complaints.