“It has been decided not to grant any further extension of time. Accordingly, banks not complying with the requirements shall compensate loss, if any, incurred by the card holder using card at PoS terminals not adhering to the mandated standards,” RBi said in a notification issued on Monday.
The upgraded PoS terminals are compatible to chip-based credit and debit cards. Chip-based cards are safer than magnetic strip cards as the data stored in chip is encrypted, which is impossible to copy or clone.
RBI has asked banks to issue only chip-based cards to customers after November 30, 2013. However, banks have already started issuing such cards to customers.
“We have installed upgraded PoS machines in all major cities,” said a senior official of a private bank. “Only a few centres are left in smaller cities and upgraded PoS will be installed soon.”