Adopt Aadhaar authentication or EMV Chip for card-based transactions

Adopt Aadhaar authentication or EMV Chip for card-based transactions- Security and Risk Mitigation Measures for Card Present Transactions.

Don’t forget your debit card PIN, for you’ll need to punch it in after swiping your card at any retail outlet from December 1, 2013. In a circular titled Security and Risk Mitigation Measures for Card Present Transactions dated November 26, 2013 RBI said, on security and risk mitigation measures for electronic payment transactions banks may take a decision whether they should adopt Aadhaar as additional factor of authentication or move to EMV Chip and Pin technology for securing the card present payment infrastructure.debit_card_EMV_Card_sbi

This is intended to make your debit card transactions more secure.

Based on detailed evaluation, the RBI’s working group came up with three solutions that include a combination of magnetic strip card and PIN, magnetic strip card and biometric (Aadhaar fingerprint) and EMV chip card and PIN. The hindering factor in early adoption could be the cost of EMV chip card and PIN solution, which is quite high relative to the cost of the other options and relative to the revenue of the industry.

The estimated cost in EMV chip card and PIN is 34 times that of the magnetic strip and PIN card, while that of Aadhar fingerprint (biometric) is three times.

Most countries have migrated to chip card or chip card and PIN.

According to the RBI report, currently, only few large banks such as State Bank of India, Citibank, ICICI Bank and HDFC Bank are issuing EMV chip cards.

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