Zip Zap Zoom – Only EMV chip and pin based cards from September 01, 2015

          Reserve Bank of India has announced advised all Scheduled Commercial Banks including RRBs/Co-operative Banks / State Co-operative Banks/Central Co-operative Banks/ Authorised Card Payment Networks to adopt enhanced security measures for all new cards issued – debit and credit, domestic and international.

          The guidelines come into effect from September 01, 2015. This means the respective players have sufficient time to enhance their infrastructure levels.

          The relevant RBI Notification number is RBI/2014-15/589 DPSS (CO) PD No.2112/02.14.003/2014-15

          Highlights of the Notification are:

Subject Line: Security and Risk Mitigation Measures for Card Present and Electronic Payment Transactions

           The Reserve Bank has adopted a phased manner of implementation of security and risk mitigation measures in card transactions as evident from the instructions issued from time to time. The acceptance infrastructure is getting geared to accept EMV chip and pin cards.

However, in case of card issuance, while some banks have already moved to EMV chip and pin cards issuance, a large number of banks continue to issue Magnetic stripe cards.

Thus, given the level of readiness of the card acceptance infrastructure at point of sale and also the implementation of PIN@POS for debit cards, the time is appropriate to move further along the path to migrate away from magnetic stripe only cards to chip and pin cards.

 Accordingly, banks are advised that with effect from September 01, 2015 all new cards issued – debit and credit, domestic and international – by banks shall be EMV chip and pin based cards.

 The migration plan for existing magnetic stripe only cards will be framed in consultation with stakeholders and timeline for the same will be advised in due course.