Mumbai: If you are using older magnetic-stripe based Debit or Credit Cards, you must replace them as soon as possible as all the older cards will become useless after December 31, 2018.
According to RBI sources, the banks have been asked to issue new Europay, Mastercard, Visa chip based cards to avoid cloning which has been rampant in older magnetic stripe-based cards.
The banks have also been asked to warn the account holders and card users beforehand so that they replace their older cards with the new Europay, Mastercard, Visa chip based Credit and Debit cards before December 31. Accordingly, card users are being sent SMS and e-mails in this regard by the banks they have operating accounts with.
Account holders should also note that replacement of the existing Debit and Credit cards with the new Europay, Mastercard, Visa chip-based cards is free.
The Europay, Mastercard, Visa chip-based Debit and Credit cards were first introduced in January 2016. The Reserve Bank of India had made it compuslory for all banks to issue only chip-based cards to account holders applying for new Debit or Credit cards after 31 January 2016.
Along with domestic banks, the Reserve Bank of India (RBI) directive is applicable for the international Debit and Credit cards users as well.
The Chip-based cards, also known as chip and PIN cards, are more secure than the magnetic-stripe cards. The sensitive data in Europay, Mastercard, Visa cards is stored in a chip, due to which it makes it difficult for fraudsters to clone the card. Moreover, information in the chip is encrypted, which provides extra level of security.
Furthermore, the EMV chip based Debit and Credit cards require a little change in habit for completing transaction, especially through a Point of Sale (PoS) machine. Transaction through a PoS device can be done using the magnetic stripe cards just by swiping it while transaction using new chip-based cards will also ask for PIN (Personal Identification Number) to give an additional level of security to the users.
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