Clean up your act, RBI tells credit card issuers

Noting that reports of misuse of credit cards before they reach the intended customers are on the rise, RBI said the card issuing bank and not the customer would be held responsible. "Any loss arising out of misuse of such unsolicited cards will be the responsibility of the card issuing bank only and the person in whose name the card has been issued cannot be held responsible," the apex bank said.

To protect customers from liability in respect of lost cards, RBI has proposed that banks take out group insurance covers that would provide protection against liabilities arising out of lost cards. However, the insurance covers should not be forced onto credit card holders and only those customers who are ready to bear the cost of the premium should be provided an appropriate insurance cover in respect of lost cards, the apex bank said.

For enhancing the protection of customers and reducing misuse of credit cards, RBI has also suggested banks to issue credit cards bearing scanned photograph, laminated signature or personal identification number of the customer.

In a separate development, the central bank has also mandated insurance companies that generally attach health insurance policies with the issued credit cards, saying they would now have to ask the beneficiaries in written, the proper details of nominee(s) for the insurance cover in respect of accidental death and disablement benefits and must also ensure that the relevant nomination details are recorded by the insurance company. Moreover, banks which have tied up with such insurance companies would also have to issue a letter to the credit card holder indicating the details regarding the name, address and telephone number of the insurance company, which would handle the claims relating to the insurance cover.

RBI also said that banks should register their telemarketers with the department of telecommunications (DoT) within the deadlines set by Telecommunications Regulatory Authority of India (TRAI) and scrupulously follow RBI instructions on the National Do Not Call Registry of TRAI.

Moreover, the details of personal data of customers are confidential, RBI said, adding, banks should not share the personal data of any customer with any agency without prior permission of the customer.