In a circular regarding smart and debit-card issuance by banks, the RBI said in case of smart-cards having stored value (as in case of the off-line mode of operation of the smart-card), no interest need be paid on the balances transferred to smart cards while in debit-cards or on-line smart cards, the payment of interest should be in accordance with the interest rate directives issued to banks from time to time under Sections 21 and 35A of the Banking Regulation Act (1949).

The central bank has further stated that "The outstanding balances/unspent balances stored on the smart/debit cards shall be subject to the computation for the purpose of maintenance of reserve requirements. This position will be computed on the basis of the balances appearing in the books of the bank as on the date of reporting". On the issuance of debit cards, the Reserve Bank has also clarified that "Banks can issue on-line debit-cards to select customers with good financial standing even if they have maintained the accounts with the banks for less than six months".

Banks can extend the smart and debit-cards facility to those having saving bank, current, and fixed deposit accounts with built-in liquidity features maintained by individuals, corporate bodies and firms. However, smart and debit-card facility are not be extended to cash-credit and loan-account holders though banks can issue on-line debit-cards against personal loan accounts, where operations through cheques are permitted. According to the guidelines, banks need not obtain the prior approval of the RBI and details of smart/debit cards introduced may be advised to the central bank together with a copy each of the agenda note put up to their Boards and the resolution passed thereon. It is advised that banks should not issue smart/debit cards in tie-up with any other non-bank entities. Banks are to review operations of smart/debit cards and put up review notes to their Boards at half-yearly intervals.