Indian banks will need additional time to comply with the guidelines of Reserve Bank of India (RBI) on credit and debit cards which have been used for international transactions, said a media report.
RBI had directed banks to replace all credit, debit cards which have been used for international transactions with new ones by June 30, 2013. The decision to convert all existing magnetic stripe cards that have been used abroad to EMV chip cards was aimed at avoiding frauds. EMV chip cards are almost impossible for fraudsters to decode.
However, it seems like banks will miss that deadline as more than 50 per cent of the cards used overseas are yet to be replaced.
A banking official said that banks are finding it tough to meet the deadline as task is very cumbersome and needs development of a new platform and replace the older cards with new chip-based cards after segregating cards that have been used overseas.
Industry experts estimate around 2-3 million cards have been used in international transactions out of 19 million credit cards users in India.
Cost of an EMV card is around 5 times more than that of previous cards and will be borne by the cardholder, said bankers.