Reserve Bank of India (RBI) rejects the bank’s plea to extend deadline for migrating to EMV chip and PIN cards. Reserve Bank of India (RBI) want banks to implement these security features in debit and credit cards.
Earlier the Central bank of India in august last year extended the deadline to September 30, 2016 for new cards issued under the PM Jan Dhan Yojana and other Government schemes.
The deadline was kept at December 2018 for migration of existing magnetic stripe only cards to EMV Chip and PIN cards.
Some bank approached RBI for further extension for complying with new security features in debit and credit card despite extension of time given to banks.
Objective of EMV Chip and PIN cards over magnetic strip only cards ?
The main objective behind the EMV Chip and PIN cards is to further enhance the security and risk mitigation in card present transactions.
The enhanced security features will considerably bring down the fraud in debit , credit card transactions.
What is EMV definition ?
EMV is a global standard for debit and credit card payments based on chip card technology. The name has its origin from card schemes Europay, MasterCard and VISA – the original card schemes that developed it.
The standard covers the processing of credit and debit card payments using a card that contains a microprocessor chip.
Why transactions called CHIP and Pin ?
The transactions are referred to as CHIP and Pin because PIN entry is required to verify the customer is genuine cardholder. This is just a simplification since the EMV specifications also include other verification methods as well.