Debit / Credit card alert! Your card may become invalid in New Year 2019

A circular issued by the Reserve Bank of India (RBI) in year 2015 could result in blocking of your credit and/or debit cards. In the circular dated 27^th august 2015, RBI had stated that

“As regards migration of existing magnetic stripe only cards to EMV Chip and Pin cards, banks may initiate necessary steps to progressively migrate on their own accord so as to ensure that all active cards issued by them are EMV Chip and Pin based by December 31, 2018. The issuing banks may please note that the magnetic stripe cards issued would have to be replaced by December 31, 2018 irrespective of the validity period of the card and accordingly banks may have to take proactive steps to ensure that the deadlines are adhered to without fail.”

RBI has initiated this mammoth exercise way back in 2015 and had extended the deadlines once in 2016. However, banks had expressed their inability to replace all the cards by that time so another timelines was given which expires on 31^st Dec 2018.

The objective of this directive is to migrate to EMV chip / pin based credit and debit cards as these cards have better safety and security features as compared to the magnetic-stripe cards.

DO YOU KNOW: EMV stands for Europay, Mastercard, and Visa, the developers of the chip

As on August 2018, there are about 4.1 Crore credit cards and 98.01 Crore debit cards, with SBI alone have almost 31 Crore debit card. This indicates huge challenge in hand for both, banks and customers. Non adherence could lead to blocking of Cores of cards.

The old cards that were issued were equipped with magnetic stripe. These cards store user data on a magnetic stripe which is capable of static data authentication only. This makes it easier for fraudsters to copy data from which is also known as skimming. On other hand, EMV cards employ dynamic data authentication, which mean the card generates dynamic data for every transaction, making it impossible to copy user data. The two-factor authentication with One Time Password (OTP) ensures that users are kept in the loop even though the card is used at location different from that of owner and this prevents fraudulent transactions taking place from their bank account.

Contact your branch immediately in case you haven’t received your upgraded card. Your bank should replace the old magnetic card with EMV one without any charge

There are two ways through which you can request for new card

First is obviously by visiting bank branch and submitting written application. Secondly is through Net Banking. We are giving step by step guide for online request for SBI

- Login with their user ID and password on www.onlinesbi.com   
- Click on 'e-services' tab          
- Select 'ATM card services' from the drop-down menu  
- Select 'Request ATM/Debit Card' option          
- Now select the savings account for which you wish to replace the ATM card. Do this for all your  

  accounts        
- Click on the 'Submit' button to complete your request for debit card replacement

As an extra security measure, we suggest change of PIN on receipt on new EMV card

About Us:        

We are a neo advisory firm that believes in Goal based investment. We offer investment services in Mutual Funds and also retirement/ Life insurance solutions. We have over a decade experience in finance sector. For any clarification / investment needs call us on +91 9325295502. We provide services across India. Also visit us on www.growwealthadvisors.com 

We are now on Instagram. Visit us on www.instagram.com/growwealthadvisors/