Banks have started restricting foreign spending limits made through credit and debit cards, with an aim to curb the increasing frauds and misuse of credit and debit cards in the country.
Some banks have already alerted their card members about the restrictions through text messages or e-mails.
The limits, however, will be applicable only for international transactions and will not affect transactions done within India. RBI has asked customers, who wish to increase or decrease the limit, to contact their banks.
A private sector bank retail lending head said until now, there were two types of limits on credit cards, the overall credit limit and the cash limit.
"Now, additionally, there will be an international spend limit. But all these limits will be a subset of the customer’s overall credit limit," he added.
"The foreign spend limit will be less than or equal to the overall credit limit of the customer."
A senior executive at a foreign bank in India said, "RBI has not specified the foreign spend limit. It was decided by us depending on the risk profile of the customer. We try and ensure the limit is reasonable. The customer can also change this limit by sending us a request."