Old ‘magnetic stripe-only’ cards will be invalid from January 2018

Source: The Hitavada      Date: 10 Dec 2018 09:34:15


 

Business Bureau,

As per the new guidelines of the Reserve Bank of India (RBI), bank customers will have to upgrade their old credit and debit cards before New Year. The old ‘magnetic stripe-only’ cards will not be accepted after December 31, 2018. For the past few days, many banks are sending messages to their customers asking them to switch on to ‘EMV chip-based’ cards.


EVM stands for Europay, Visa, Mastercard. The old magnetic stripe-only debit and credit cards are to be replaced by EMV chip-based ones by 31 December 2018. A senior officer in one of the public sector bank, on the condition of anonymity, said that many customers are still suing debit and credit cards that have magnetic stripe-only. “It has been found that cloning of these old cards is possible which is a major challenge before the banking industry. But in case of new cards with EMV chip, cloning could be prevented and thus illegal online withdrawal of money from your bank account could be avoided,” he said.


The new RBI guideline was necessitated in order protect customers from some unscrupulous online predator. “The banks want customers money to be secured,” he said adding that the new chip-based cards have been prescribed to keep your money and transaction safe. Another bank officer told The Hitavada that replacement of existing debit and credit cards with the new EMV chip-based cards is free of cost. Banks bear the cost for new cards. It is important to note that the EMV chip-based debit and credit cards are in use since January 2016 but the number of customers using these upgraded versions are not significant.


“The banks are looking replacing the old system at the earliest possible in the interest of the customers,’ he said. Those opening new accounts in the banks are getting these new EMV chip-based cards. The Reserve Bank of India directive is applicable to not only all domestic but also the international debit and credit cards. The existing magnetic stripe-only cards will not be valid beyond December 31-deadline.