RBI extends deadline for banks to implement card security features
The RBI has provided the banks more time for introduction of additional security features for payment through debit and credit cards as banks and related entities had yet to put in place the requisite infrastructure. The new deadline for banks to comply with all security features such as EVM chip on cards, real time fraud monitoring system, use of PIN, limit on transactions and the like is November 30, 2013.
After this deadline, in the event of a customer complaining of misuse of the card, the issuer or the acquirer who has not adhered to the time lines should bear the loss.
Why this additional features?
The RBI had in 2011, issued the guidelines for additional security features with a view to protecting cardholders against cyber frauds and other misuse. It has been observed that increased usage of credit and debit cards has led to surge in frauds, especially in the case of lost or stolen cards. Also, there have been reports of data on cards being compromised and cards skimmed /counterfeited.
Month: Current Affairs - June, 2013