What changed
RBI broadly accepted the Working Group's report on securing card-present transactions. Banks are directed to implement improved fraud risk management, strengthen merchant sourcing, and secure technology infrastructure by September 2012-2013. POS terminals must be enabled to accept debit card transactions with PIN and be ready for EMV chip cards by June 2013, and issuers must issue EMV chip & PIN cards to customers who have evidenced at least one purchase using their debit/credit card in a foreign location.
What it means for you
Banks must invest in upgrading POS infrastructure to support PIN and EMV chip cards, enhancing security against skimming and cloning. Issuers need to prepare technical systems for EMV card issuance, particularly for customers using cards abroad. This will reduce fraud but requires significant operational and cost adjustments.
What you must do
- Implement improved fraud risk management practices by September 30, 2012.
- Strengthen merchant sourcing and monitoring processes by September 30, 2012.
- Secure technology infrastructure with UKPT/DUKPT/TLE by September 30, 2013.
- Ensure POS terminals are enabled to accept debit card transactions with PIN and are ready for EMV chip card acceptance by June 30, 2013.
- Issue EMV chip & PIN cards to customers who have evidenced at least one purchase using their debit/credit card in a foreign location by June 30, 2013.
Who it affects
All scheduled commercial banks including RRBs, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Authorised Card Payment Networks
What is the deadline for enabling PIN at POS terminals?
All POS terminals must be enabled to accept debit card transactions with PIN by June 30, 2013.
What is the alternative to EMV chip & PIN cards?
Aadhaar-based biometric authentication can be used in lieu of PIN for card-present transactions, with magstripe cards continuing as the form factor.
Which customers must receive EMV chip & PIN cards?
Issuers must issue EMV chip & PIN cards to customers who have evidenced at least one purchase using their debit/credit card in a foreign location, by June 30, 2013.