Banking and monetary regulator Reserve Bank of India has decided to work on towards further increasing the security features of credit cards. So far the credit cards had magnetic strip attached to them as a security feature.
A panel set by RBI has decided that all credit cards issued in the upcoming three years should bear an electronic chip and should have a unique PIN attributed to it.
A working committee was set up by RBI to work on how to increase security in transactions related to credit cards. The committee has recommended that either PIN can be attributed to each card or a biometric verification could be associated to the identity of the cardholder taking Aadhaar data into consideration.
Lenders like State Bank of India, ICICI Bank, Citibank and HDFC Bank have already started working on replacing their magnetic swipe cards with dual cards which have both a chip as well as a magnetic swipe.
The committee has proposed in a tenor of 5 years all credit cards in India should be chip based and have a unique PIN associated to them.