 "ATMs to have chip-and-pin based infra: RBI")
RBI has directed all banks and white-label ATM operators to have chip-and-pin based card infrastructure. Earlier, the regulator had directed banks to issue only chip-and-pin based cards and migrate old cardholders to these new cards.
RBI said though the cards comply with the new norms, ATMs continue to process card transactions based on data from the magnetic stripe, the old system. As a result, cards being used in ATMs are more prone to skimming frauds.
“It has, therefore, become necessary to mandate EMV chip and pin card acceptance and processing at ATMs also. Contact chip processing of EMV chip and pin cards at ATMs would not only enhance the safety and security of transactions at ATMs, but also facilitate preparedness of the banks for the proposed ‘EMV Liability Shift’ for ATM transactions, as and when it comes into effect,” RBI said in a release.
Also, the new ATMs being set up have to necessarily comply with these rules.
RBI said though the cards comply with the new norms, ATMs continue to process card transactions based on data from the magnetic stripe, the old system. As a result, cards being used in ATMs are more prone to skimming frauds.
“It has, therefore, become necessary to mandate EMV chip and pin card acceptance and processing at ATMs also. Contact chip processing of EMV chip and pin cards at ATMs would not only enhance the safety and security of transactions at ATMs, but also facilitate preparedness of the banks for the proposed ‘EMV Liability Shift’ for ATM transactions, as and when it comes into effect,” RBI said in a release.
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As a result, banks and white-label ATM operators have been manadated to ensure all existing ATMs installed/operated by them can process of chip and pin cards by September 30, 2017.
Also, the new ATMs being set up have to necessarily comply with these rules.