Your debit and credit card transactions will be more safe from Tuesday as the Reserve Bank of India (RBI) has refused to extend the September 30 deadline for installing point of sale (PoS) terminals with enhanced features.
If banks fail to install such machines and fraud happens, they would have to bear the full cost of fraudulent transaction. Earlier this month, banks had approached RBI seeking extension of the deadline.
“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.”