MANU/RMIC/0178/2015

Ministry : Reserve Bank of India

Department/Board : Department of Payment and Settlement Systems

Circular No. : DPSS.(CO).PD.No.2112/02.14.003/2014-15
                   RBI/2014-2015/589

Date : 07.05.2015

Notification/ Circulars Referred : Circulars DPSS.PD.CO.No.513 / 02.14.003 / 2011-2012 dated September 22, 2011 MANU/RMIC/0335/2011;DPSS (CO) PD No.2377 / 02.14.003 / 2012-13 dated June 24, 2013 MANU/RMIC/0132/2013

Citing Reference:
Circulars DPSS.PD.CO.No.513 / 02.14.003 / 2011-2012 dated September 22, 2011 MANU/RMIC/0335/2011  Referred

DPSS (CO) PD No.2377 / 02.14.003 / 2012-13 dated June 24, 2013 MANU/RMIC/0132/2013  Referred

All Scheduled Commercial Banks including RRBs/
Co-operative Banks / State Co-operative Banks/
Central Co-operative Banks/ Authorised Card Payment Networks

Madam / Dear Sir,

Security and Risk Mitigation Measures for Card Present and Electronic Payment Transactions

A reference is invited to our circulars DPSS.PD.CO.No.513 / 02.14.003 / 2011-2012 dated September 22, 2011 and DPSS (CO) PD No.2377 / 02.14.003 / 2012-13 dated June 24, 2013 on security issues and risk mitigation measures related to Card Present (CP) transactions read along with circular dated February 28, 2013 on security and risk mitigation measures for electronic payment transactions wherein various timelines were indicated for accomplishment of tasks for securing card and electronic payment transactions.

2. The Reserve Bank has adopted a phased manner of implementation of security and risk mitigation measures in card transactions as evident from the instructions issued from time to time. The acceptance infrastructure is getting geared to accept EMV chip and pin cards. However, in case of card issuance, while some banks have already moved to EMV chip and pin cards issuance, a large number of banks continue to issue Magnetic stripe cards. Thus, given the level of readiness of the card acceptance infrastructure at point of sale and also the implementation of PIN@POS for debit cards, the time is appropriate to move further along the path to migrate away from magnetic stripe only cards to chip and pin cards.