Concerned over rising incidents of cyber frauds, the RBI will soon ask banks to shift to chip- based ATM cards from the existing magnet strips ones and upgrade the currency vending machines.
The RBI working group on information security, electronic banking and technology risk management has also made a case for setting up special cells on banking frauds in the state police departments to deal with bank related cyber crimes.
“It is recommended that RBI may consider moving over to chip-based cards along with requiring upgradation of necessary infrastructure like ATMs/POS terminals in this regard in a phased manner,” said the report of the working group headed by RBI Executive Director G Gopalakrishna.
While pitching for chip-based cards, the report said, it is difficult to copy and make their duplicates as compared to the existing magnet strips ones, which are currently used.
