Reserve Bank of India (RBI) in 2015 had issued a directive to all bank across India mandating them to get rid of old magnetic stripe cards. This is because magnetic stripe cards can easily be skimmed. As per the RBI directive, all magnetic stripe cards must be replaced by EMV chip cards by December 31, else the older magnetic stripe cards may stop working from January 1, 2019. Here is everything you need to know.
EMV cards are smart payment cards which store data on integrated circuits rather than magnetic stripes. Also called chip cards or IC cards, these cards create dynamic data every time a user makes a transaction using them. This makes it almost impossible for fraudsters to duplicate or clone your card.
In EMV cards, the payment data is secured on a chip-enabled payment card than on a magnetic stripe (magstripe) card. The biggest difference is that the former supports dynamic authentication, while the latter does not and the data is static. As a result, it is easier for fraudsters to copy data from a traditional magstripe card using skimming devices. EMV cards are claimed to be effective in combating counterfeit fraud with their dynamic authentication capabilities.
Check for the chip if you want to know whether your card will be blocked or not.
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.
Your bank should automatically replace the card with an EMV one.
Contact your bank’s home branch immediately if you haven’t received any information from your bank yet.
You can also request for the new EMV card for free by using internet banking……Read More>>