The Reserve Bank of India (RBI) had asked all banks in the country to replace the old magnetic strip cards with the new EMV chip-based debit and credit cards. The apex court had also fixed the deadline for the same as April 29.
As per the RBI guidelines, the banks need to provide new EMV chip-based debit and credit cards before April 29, 2019, and it is solely with an aim to ensure that ATM-cum-debit and credit cardholders do not fall prey to frauds.
Once the deadline is over, cardholders will not be able to transact at ATMs or point of sale (POS) machines with the old cards.
If someone hasn’t upgraded to the EMV chip cards, then the concerned person won’t be able to withdraw cash from ATMs or make payments via the card after April 29.
Earlier, the deadline for the banks to issue new generation cards was December 31, 2018.
The chips in the card store higher levels of secure encrypted data. Someone cannot hack or exploit the EMV chip-based cards. At the POS machines, the card has to be locked into a specified slot until the transaction is complete.