BNM yet to de­cide on ac­tion if PIN & PAY dead­line not met

The Sun (Malaysia) - - SPEAK UP - BY EE ANN NEE

KUALA LUMPUR: Bank Ne­gara Malaysia (BNM) has yet to con­sider tak­ing ac­tion on banks if the year-end dead­line of mi­grat­ing to per­sonal iden­ti­fi­ca­tion num­ber­en­abled (PIN-en­abled) pay­ment cards and point-of-sale (POS) ter­mi­nals is not met, given the slow mi­gra­tion process which stood at 45% for pay­ment cards and 38% for POS ter­mi­nals as at end-Septem­ber 2016.

With only 1 months left to the Dec 31, 2016 dead­line, BNM pay­ment sys­tems pol­icy de­part­ment direc­tor Tan Nyat Chuan ( pix) said it is a mat­ter best left to the in­di­vid­ual banks to man­age, as BNM pro­vided am­ple no­tice to the in­dus­try and resched­uled the dead­line from 2015 to 2017.

Sun­Biz on Oct 31, 2016 re­ported that it will be a chal­lenge for the tar­get of PIN-based pay­ment cards adop­tion to be met based on cur­rent progress.

“From the part of a reg­u­la­tor, we’ve given suf­fi­cient no­tice to the in­dus­try. These are chal­lenges best left to the in­di­vid­ual banks to man­age. It’s their own ef­fort to man­age their mer­chants and card­hold­ers. Some banks have been able to do it well ahead, some have not,” he told a media brief­ing here on the mi­gra­tion to PIN-based pay­ment cards here yes­ter­day.

Tan said BNM re­serves the right to take ac­tion on any par­tic­u­lar bank which is seen to have not made suf­fi­cient ef­fort, but that will be on a case-by-case ba­sis.

“We’ll as­sess the non­com­pli­ance and we will look at the spe­cific cases and make a decision in­ter­nally as to whether or not we will take for­mal ac­tion on banks that have not com­plied with our dead­lines,” said Tan.

There are a to­tal of 25 mil­lion cards to be re­placed in Malaysia, which con­sti­tutes 7.6 mil­lion credit cards and 17.8 mil­lion debit cards. Of this, 71% of credit cards have been mi­grated to PIN-en­abled cards, while 34% of debit cards have been mi­grated as at endSeptem­ber.

The share of debit card and credit card trans­ac­tions is at 21:79 for the first nine months of 2016.

The in­dus­try has com­mit­ted to in­vest RM1.1 bil­lion over six years (2015 to 2020) to sup­port pay­ment card in­fra­struc­ture en­hance­ment and ex­pan­sion. This com­prises en­hanc­ing the se­cu­rity of pay­ment card trans­ac­tions through mi­gra­tion to PIN-based cards by Jan 1, 2017; en­hanc­ing the ef­fi­ciency and con­ve­nience of pay­ment card trans­ac­tions through the roll­out of con­tact­less debit cards by Jan 1, 2018 and the ex­pan­sion of POS ter­mi­nals to 800,000 POS ter­mi­nals by 2020.

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