The Reserve Bank of India on Thursday advised banks to migrate from magnetic stripe cards to issuance of EMV Chip and PIN based cards.
While the POS terminal in India has been enabled to accept and process EMV Chip and PIN cards.
The ATM infrastructure, still continues to process the card transactions based on data from the magnetic stripe. As a result, the ATM card transactions remain vulnerable to skimming, cloning, etc. frauds, even though the cards are EMV Chip and PIN based.
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, the RBI said in the notification.
Banks in India and the White Label ATM operators are, therefore, advised to ensure that all the existing ATMs installed/operated by them are enabled for processing of EMV Chip and PIN cards by September 30, 2017.
All new ATMs shall necessarily be enabled for EMV Chip and PIN processing from inception.