Switch to chip-and-PIN technology at ATMs by 2017, RBI tells banks
The move will protect users from skimming and cloning, which they are currently vulnerable to because the machines process their data from magnetic strips.
The Reserve Bank of India on Thursday said banks should ensure that Automated Teller Machines have the technology to process chip-and-PIN cards by 2017. ATMs currently read data from the cards’ magnetic strips. The instructions were part of the RBI’s efforts to get all banks to add safety measures to ATMs that will prevent card cloning and skimming, PTI reported.
The RBI noted that while cards now come with the EMV chip and PIN, many ATMs don’t use them to process transactions, leaving customers vulnerable to cybercrimes. The bank also said moving to the chip-and-PIN technology would allow banks to adhere to the proposed "EMV liability shift", which stipulates that in case of a fraud, the liability will shift to the bank or merchant that did not provide chip technology. The merchant or bank is currently not liable if a counterfeit transaction is made with a magnetic strip card.