A change coming in the new year 2019. Yes. If your Debit/Credit card is not a chip based, you will be unable to swipe your card, as per RBI instructions. What does RBI Circular State?
- All existing bank cards should be Europay, Mastercard, Visa (EMV) chip and pinbased from January 1.
- The magnetic stripe cards will not be valid after December 31.
- However, with less than 2weeks to go, banks are finding it difficult to replace their old cards.
- It is learnt that only 5070 per cent of the old cards have been replaced. e.
- It is also learnt that the remaining magnetic stripe cards are those that were issued prior to September 2015.
- As part of its processes to increase the required security and mitigate risks, RBI made it compulsory for banks to issue only EMV chip and pinbased debit and credit cards (both domestic and international) from September 1, 2015.
- However, it is not yet clear whether the magnetic stripe cards would function beyond the deadline which is 31st December 2018.
- As of now, RBI has not extended the deadline and banks are likely to disable to comply with the RBI guidelines.
- This would make the customers visit the branches and apply for a new card.
- State Bank of India, has issued new cards to its customer who had used the magnetic card at least once in the last 12 months.
- A State Bank notification reads that those who have not used their card in the last one year should visit their respective bank branches and collect the new cards.
- It is further learnt that SBI would not be charging its customers for the issue of new cards however there is overall confusion over the matter.
- In order to fight the rising frauds caused due to a recent number of Electronic Frauds such as Cloning, Skimming, and misuse of lost cards, EMV cards are being introduced.
- Personal Identiﬁcation Number (PIN) while doing a transaction, in order to rule out any misuse.
Banks are competing against time to replace existing cards with CHIP BASED ones. Let us wait and see what happens…