Pune: The Reserve Bank of India (RBI) has issued directives that all old magstripe debit/credit cards will become non-functional and has urged consumers to replace it with new EMV chip-based cards before December 31, 2018.

The RBI notification states, “Keeping in mind the objective to further enhance the security and risk mitigation in present card transactions, and also the impact it may have on achieving the timeline for complete migration of all existing magstripe cards, it has been decided not to grant any further extension beyond the respective timeline indicated in circular dated August 27, 2015, for new issuances and full migration to EMV Chip and PIN cards.”

The EMV chip stores the payment data and card information and supports dynamic authentication. Dynamic authentication means that the card generates different data every time a transaction is carried out. This makes it almost impossible for scammers and fraudsters to clone the card. 

Since magstripe cards will become non-functional from December 31 onwards, ardholders are advised to get their cards replaced. Banks are replacing the cards free of charge. 

Keep in mind

• As per RBI directive, magstripe cards have to be replaced by EMV chip-based cards by the end of 2018, irrespective of the validity of the magstripe card. 
• Magstripe cards are more prone to frauds like card skimming, card cloning etc. 
• EMV chip-based cards are expected to solve this issue to some extent.
• Cardholders can visit their nearest bank branch and get their cards replaced.