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.
