With the RBI’s recent notification; coming December 31, 2018, most of the existing debit and credit cards will stop working. Will your debit or credit card work or you need act on it ?
We’ve listed all required details for you ! Keep on reading to find out more!
RBI’s Notification On Existing Debit/Credit Cards
In 2015, RBI had issued a notification under 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007), which covered all existing debit and credit card holders; as a security measures for the customer.
As per the notification, RBI has stated that all debit and credit cards have to be chip based, which are called EMV Debit/Credit Card. Also known as ‘Chip n Pin’ cards.
Due to substantial increase in the number of paperless transactions in India; it has initiated IT wing to cater this called ReBIT.
Will You Need To Change Your Debit Cards/Credit Cards ?
As per the bank records majority of debit and credit cards being used today are magnetic stripe only cards, which process greater security risks; hence need to migrate to the EMV cards.
So you’ll only need to change your card in case your existing debit and credit cards are magnetic stripe only cards, then they will be useless after December 31st.
Every magnetic stripe only credit/debit cards need to be changed to EMV Chip based cards before December 31st, 2018.
Has Banks Started Informing Users?
Yes. Since last few days, bank customers must have received SMS and E-Mails from their respective banks, suggesting them to replace their existing magnetic stripe only cards with EMV based cards.
Most of them must have deleted the SMS, assuming it to be spam. But hold on this time you need to take it seriously and act on it.
Are these replacements are Chargeable ?
Most of the cases these replacements are FREE of Charge and you won’t need to pay for this; as several banks have announced that they will replace the magnetic stripe cards with EMV based cards for free.
All you need to do is, visit your nearest bank branch, and request for the replacement.
Why to Migrate to EMV Cards?
EMV or Europay-Mastercard-Visa cards are globally accepted as a standard for authenticating transactions using a chip, which holds the vital information related to your account.
In the current magnetic stripe based cards, the vital information is stored in the single magnetic stripe, which makes its cloning easier. Fraudsters can easily close the magnetic stripe, as the information is static.
However, EMV based cards are not only secured by chip which is dynamic information, but also a password which needs to be entered everytime for authenticating a transaction.
These two major features make EMV based based more secured, and this is the reason RBI wants every card to be EMV.
Earlier, September 1, 2015 was the deadline, which has been extended gradually to December 31, 2018 now.
We will keep you updated, as we receive more information.