RBI’s Notification announcement On Existing Debit/Credit Cards during 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 per the announcement, RBI has settled 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.
EMV Full Form ?
- E: Europay
- M: MasterCard
- V: Visa Card
What type of Debit Cards/Credit Cards Needs To Be Changed?
Mainstream of debit and credit cards being used today are magnetic stripe only cards, which process greater security risks.
In case you are not changing you ATM card or existing debit and credit cards, using magnetic stripe cards only, then they will be useless after December 31st.each magnetic stripe credit/debit cards only need to be transformed to EMV Chip based cards before December 31st, 2018.
Yes. Since last few days, bank customers must have received SMS from their individual banks, suggesting them to replace their existing magnetic stripe only cards with EMV based cards.
Most of them have got to deleted the SMS, some messages gone to be spam. But this time, it’s not.
What Is So Special About EMV Cards?
EMV Stands for Europay-Mastercard-Visa cards these cards are globally accepted as a standard for authenticating transactions using a chip, which holds the very important information related to your account.
In the present magnetic stripe based cards, the essential information is stored in the single magnetic stripe, which makes its cloning easier. Fraudsters can easily hack and close the magnetic stripe, as the information is static.
Though, EMV based cards are not only protected by chip which is dynamic information, but also a password which needs to be entered always for authenticating a transaction.
These two major characteristics make EMV based one more secured, and another one is we used in global transaction.this is the reason RBI wants every card to be EMV.
How Much Charge For Replacing The Cards?
A few banks have announced that they will change the magnetic stripe cards with EMV based cards for free of cost.
All you want to do is, go to your nearest bank branch, and apply for the replacement.