Your Card Transactions are much more safer now – thanks to RBI

Due to latest mandate issued by RBI, all banks have now added a new layer of security for transacting with cards (debit & credit card) at merchant location.

What is the new level of security?

Debit card holders – You will need to punch your ATM pin for authorizing the transactions

Credit card holders – You will receive a new card with EVM technology (chip and pin card) and a new PIN. This PIN will be required to authorize the transactions

POS equipment

Why this change?

Until now it was very easy to transact with stolen cards and there was a 200% increase in the number of cases of fraud because of stolen card data through card skimming and counterfeiting. This had prompted Reserve Bank of India to form a panel to look into securing card-based transactions through additional layers of authentication, such as PINs and biometrics in March 2011.

RBI has given an option to bankers to choose either of PIN or biometric technology (using aadhaar cards) for existing cards and make the system ready for both options for all new cards.

Was this really required?


After introduction of additional authentication layer in online transaction, offline was still open to frauds. Even in lost, stolen cards it takes some time to get the card deactivated and it the meantime it can result in losses. With additional PIN required to execute any transaction, it would be really difficult to misuse the information.

This will also safeguard banks and other institutions from losses in cases of stolen personal data.

What is EVM technology

In the EVM technology card has chip in place of magnetic strip and a PIN authentication is required at merchant places. This technology is accepted and used globally.

EVM Card

Precautions required

Since most of the machines at merchant places (POS machines) are placed in open, it is very easy for others to see the PIN at the time of punching.

You should take care by covering the keypad before entering the PIN.

So now you can transact using card in a much safer and secure manner.

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