Old debit and credit card is no longer working in ATM, shops or any point-of-sale machines: This might be concerning for the old debit or credit card holder users who have not yet applied for the new card which consist of the new feature authorized by the Reserve Bank of India to all the banks in India. Many old debit or credit card holder might be facing struggle in undertaking transactions at ATMs, shops or any point-of-sale machines this year.
Your Debit card may not work in ATMs or malls from January 1, online banking on your account will continue
- The Reserve Bank of India has asked all the banks operating in India to dump the old magnetic stripe cards.
- RBI has mandated the use of EMV chip cards from January 1, 2019.
- The RBI directive applies to both domestic as well as the international banks debit and credit cards.
All the banks functioning in India has been asked by the Reserve Bank of India to dump the old magnetic stripe cards. The reason behind it was that these old magnetic stripe cards are easy to duplicate and might get used in bank scams.
As a substitute of old cards, the banks have been asked to make in access of cards with a security chip inside them called EMV or Europay Mastercard Visa chip cards. EMV cards are more safe and encoded than the magstripe cards.
The RBI has instructed the use of EMV chip cards from 1st January 2019 onwards and because of which many of the old card users may be undergoing struggle in using their old card in ATMs, shops, or malls presently. To avoid such inconvenience the bank account holders are asked to apply for the new cards which will be upgraded and the users will not face any inconvenience regarding this.
On the other hand, only the ATMs or point of sale machines will be affected by the old cards. Users can still bring out transactions like paying bills, money transfer and further more by means of online banking or through the online banking of their bank.
Here are some of the details related to old and new and debit and credit card transaction that is from magnetic stripe cards to EMV chip cards. Let’s have a look:
- The Reserve Bank of India had allotted an instruction in 2015 asking all the banks in India to substitute old magnetic stripe cards with EMV chip cards by the end of 31st December 2018. The central bank provided almost three years to all the banks in India to make this alteration.
- The instruction was applicable for both domestic as well as the international banks debit and credit cards.
- The new EMV chip debit and credit cards came into use from January 2016.
- Banks in the last few months of the year 2018 started directing out messages to users, notifying them to upgrade their cards before 31st December 2018.
- The reason for which RBI has decided to dump old magstripe cards was that, that they are less secure than EMV chip cards. The magnetic stripe card contains user information in a stagnant form in the black strip spotted at the back of the card.
- As per RBI, on 30th September 2018, there were 990 million debit cards and 42 million credit cards in the nation paralleled to the 847 million debit cards and 36 million credit cards at the start of the year 2019.
- The EMV or Europay Mastercard Visa chip cards maintain dynamic information certification which makes them challenging to duplicate. They derived with improved information encryption and storing technology.
- The charges for the replacement of old debit and credit cards with the new EMV chip built cards will be endured by the banks accordingly.
- One can upgrade their old cards through net-banking or by visiting your bank’s main branch. On the other hand, banks might charge some amount as the last date for the alteration was 31st December 2018.
- The new EMV card will be delivered within seven working days after applying.