Banks not mak­ing ATMs, Point of Sale de­vices com­pli­ant to EMV chips

The Sunday Guardian - - Nation -

Banks are not fol­low­ing the Re­serve Bank of In­dia (RBI) di­rec­tive to make the au­to­mated teller ma­chines (ATMs) and Point of Sale (POS) de­vices com­pli­ant to EMV chip (Euro­pay, Mas­ter­card & Visa), which would make dig­i­tal trans­ac­tions much safer. As re­sult, the RBI is forced to ex­tend the dead­line time and again.

In or­der to en­sure that cus­tomers are pro­tected from theft of data or money, the RBI, in May 2016, had asked all banks to en­sure that their ATMs are able to process the EMV chip and PIN trans­ac­tion by 30 Septem­ber 2017, by mi­grat­ing from the ex­ist­ing mag­netic stripe cards, which is vul­ner­a­ble to clon- ing and skim­ming.

How­ever, most banks have failed to make their ATMs EMV com­pli­ant till now, forc­ing the Cen­tral bank to ex­tend the time limit once again. Now, the banks have been given the dead­line of De­cem­ber 2018 to make ATMs/POS as well as cards EMV com­pli­ant.

There are 2.35 lakh ATMs across the coun­try. Most of the banks, bar­ring some pri­vate ones, have not started the process in this re­gard. As a re­sult of this de­lay, ATM frauds are in­creas­ing day by day. A large num­ber of for­eign na­tion­als are now into ATM frauds in the coun­try. Re­cently, the Delhi Po­lice ar­rested four Ro­ma­ni­ans for allegedly cheat­ing peo­ple by cloning their ATM cards. Sim­i­lar cases of for­eign­ers be­ing in­volved in ATM frauds are com­ing in reg­u­larly from dif­fer­ent parts of the coun­try, es­pe­cially met­ro­pol­i­tan cities like Delhi, Mum­bai, Pune, Hy­der­abad, Ben­galuru etc.

“The RBI has been push­ing for mak­ing ATMs EMV chips and PIN cards. In May 2015, the RBI had is­sued a no­ti­fi­ca­tion ask­ing banks to make sure that all cards is­sued on or af­ter 1 Septem­ber 2015 have EMV chip and PIN cards. Many banks asked for an ex­ten­sion of time to meet the di­rec­tive and were given time till 31 Jan­uary 2016. How­ever, the banks failed to com­ply with the di­rec­tive. In May 2016, the dead­line was ex­tended to Septem­ber 2017. The dead­line has now again been ex­tended to De­cem­ber 2018,” said a source. The EMV chip and PIN tech­nol­ogy, un­like the mag­netic stripe tech­nol­ogy, en­ables dy­namic au­then­ti­ca­tion, and, there­fore, mit­i­gates the risk of data theft, as card thieves can eas­ily du­pli­cate cards with a mag­netic stripe us­ing sim­ple card read­ing de­vices. Many Point of Sale ( POS) de­vices across the coun­try are now us­ing this tech­nol­ogy. That is the rea­son why the card, in many cases, need not be swiped any more but only par­tially in­serted from the bot­tom of the de­vice.

“While the POS ter­mi­nal in­fra­struc­ture in the coun­try has been en­abled to ac­cept and process EMV Chip and PIN cards, the ATM in­fra­struc­ture, on the whole, con­tin­ues to process the card trans­ac­tions based on data from the mag­netic stripe. As a re­sult, the ATM card trans­ac­tions re­main vul­ner­a­ble to skim­ming, cloning, etc. frauds, even though the cards are EMV Chip and PIN based,” the RBI said in a no­ti­fi­ca­tion in May 2016. “It has, there­fore, be­come nec­es­sary to man­date EMV Chip and PIN card ac­cep­tance and pro­cess­ing at ATMs also. Con­tact Chip pro­cess­ing of EMV Chip and PIN cards at ATMs would not only en­hance the safety and se­cu­rity of trans­ac­tions at ATMs but also fa­cil­i­tate pre­pared­ness of the banks for the pro­posed ‘ EMV Li­a­bil­ity Shift’ for ATM trans­ac­tions, as and when it comes into ef­fect,” the RBI had said in the no­ti­fi­ca­tion. Farm­ers hit by the re­cent de­mo­li­tion drive at the Ya­muna bank area of Delhi are com­plain­ing of be­ing deprived of their liveli­hoods. The fam­i­lies told this news­pa­per that post the de­mo­li­tion, they were with­out a source of in­come.“We have been liv­ing here and work­ing here for al­most 40 years now. The de­mo­li­tion drive started two years ago and no mat­ter what the rea­son is, we need food to eat. We have no other source of in­come,” said a farmer. Though the land be­longs to the gov­ern­ment, the farm­ers said they had taken it from a man, Gyan Chand, who took com­mis­sion from them. A lawyer with the Na­tional Green Tri­bunal, while talk­ing

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.