Some banks have moved to EMV chip and pin cards issuance, but a large number of banks continue to issue magnetic stripe cards.
As part of its security and risk mitigation measures for Card Present and Electronic Payment Transactions, the Reserve Bank said the acceptance infrastructure is getting geared to accept EMV chip and pin cards.
"Accordingly, banks are advised that with effect from September 1, 2015 all new cards issued --debit and credit, domestic and international -- by banks shall be EMV chip and pin based cards," RBI said in a notification.
It further said that the migration plan for existing magnetic stripe only cards will be framed in consultation with stakeholders and time-line for the same will be advised in due course.
The RBI has adopted a phased manner of implementation of security and risk mitigation measures in card transactions.
EMV chip card protects against counterfeit (skimming) card fraud. EMV Chip Card and PIN protects against both counterfeit (skimming) and lost and stolen card fraud.
EMV stands for 'Euro pay MasterCard Visa' while PIN is acronym for 'Personal Identification Number'.
As of now, PIN is mainly required for ATM transactions.
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