With the increasing use of the electronic cash and credit cards, Reserve bank of India lately announced that Aadhar authentication is compulsory for card transactions. In addition to it card structure will have installed EMV chip and mandatory pin. RBI is insisting on all these measures in order to combat with the raising frauds.
Further RBI has also asked the banks to use chip based credit cards. But this would add an additional expenditure to the banks since they need to set up the systems for biometric checks established by the Unique Identity Authority of India that issues aadhar card number.
According to payments head of a leading private sector bank this aadhar authentication measure of RBI is of no use, PIN system and chip based card are best and sufficient to ensure the security. Banks have issued the new card to the customers who need to use them at international POS and soon they will issue it to others also. Banks may stop establishing POS terminals, because of this biometric validation.