RBI directed Banks to implement Fraud Risk Management Practices by 30 September 2012
Economy Current Affairs 2011. RBI directed banks to implement various safety measures related to credit card and debit card usage
The Reserve Bank of India (RBI) on 22 September 2011 directed banks to implement various safety measures related to credit card and debit card usage over a period of next two years in order to eliminate cases of fraud and ensure security of transactions.
The RBI emphasised on the need to migrate to Euro pay MasterCard Visa (EMV) chip and PIN based cards from the present magnetic strip cards as the magnetic strip card is vulnerable to skimming and cloning. The need for a complete migration to EMV chip and PIN based cards could be considered based on the progress of Aadhar (Unique Identification Card) in 18 months time frame.
The RBI directed banks to strengthen the existing payment infrastructure and future proofing system along with adoption of fraud risk management practices within a period of next 12-24 months. An imperative need was felt to secure card based transactions as well to protect the interests of the card holders.
In the circular issued in this repect the central bank directed banks to implement improved fraud risk management practices by 30 September 2012 and secure the technology set up by 30 September 2013.