To adhere to the guidelines to the banker to the banks and also to provide added layers of security for its clienteles, SBI is sending messages to its customers that it is blocking the magstripe debit cards issued to its various customers on a permanent basis. And as a replacement to it, the bank will issue fresh EMV Chip based debit cards for free.
On its site also the bank has given a mandate concerning this and has attributed the move as a step of compliance to RBIs guidelines and due to security. Customers for reissuance of the debit card need to visit the bank branch or the same can be applied via online banking.
The magnetic stripe based cards have susceptibility to different frauds such as cloning, skimming and others. So, in accordance with the RBI guidelines that has mandated transition to the chip based card by September 30, 2017, the bank is fast gearing its actions in the direction.
How are EMV chip based debit cards better?
The chip based cards have the entire account information encrypted in the chip and an added layer of security is offered by asking for PIN or personal identification number. The technology is far more secure than the magnetic stripe based cards. And the technology needs to comply with the Europay, Mastercard and Visa standards.