Do This Before Dec 31 Or Your Debit, Credit Card Won’t Work Again
About 3 years ago, that is, in the year 2015, RBI issued a directive asking every Indian bank to get rid of old magnetic stripe cards and they must be replaced by EMV chip cards by December 31, else the older magnetic stripe cards may stop working from January 1, 2019.
But what really led to this directive by RBI? This directive was basically issued because magnetic stripe cards can easily be skimmed by anyone and now the Banks have to follow the directions of the RBI. This directive from the RBI was necessary to protect its customers from several unscrupulous online predators. Debit and credit card piracy has been a major issue for several years now. According to RBI, The new chip-based cards will keep your money and transaction safe.
The new cards are EMV chip-based, which stands for Europay, Mastercard, Visa. If you are worried about the price you have to pay for the replacement then you need not worry because the new EMV chip-based cards are free of cost, instead, your banks will be bearing the cost of the replaced cards.
Look for the EMV chip on the left-hand side of the front of your credit/debit card. If there is a SIM card-like chip, then it’s fine. Else, your card is an old magnetic stripe card. However, if it doesn’t then go to your bank and surrender the card.
The RBI had made it mandatory for banks to issue only EMV chip-based cards to new customers opening new accounts or applying for new debit or credit cards after 31 January 2016. The RBI directive is applicable to not only all domestic but also the international debit and credit cards. EMV chip-based debit and credit cards are more secured compared to magnetic stripe cards.
These cards use higher standards of data encryption and also comes with improved storage technology.
The magnetic stripe cards have static information stored in the black strip that we see on the back of the card. This change in technology promises to make card cloning difficult. The new debit and credit card will require a little change in habit for completing transaction especially through a point of sale (PoS) machine. This gives an additional level of security to the user.
Still, the online transaction will continue to pose risk if you share card-related sensitive information with a stranger.