Due to the increasing use of electronic cash, the frauds and misuse of credit and debit cards are also growing. In order to curb with this problem banks have decided to restrict the foreign spending limit of credit and debit cards. This limit will not affect any transactions done in India.
Banks have started informing their customers through SMS and e-mails. The head of retail lending at a private sector bank reported that this limit will be lower then the consumers overall credit limit and they can talk with the bank for increase or decrease in the limit. After the increase in number of complaints by customers regarding the frauds as they returned from foreign, RBI instructed banks to immediately restrict the international spending. It was supposed to be implemented till 30 june, 2013 but due to huge number of credit and debit cards in use the date was extended to august end.