Mumbai, May 27 (KNN) The Reserve Bank of India (RBI) has asked the banks in India and the White Label ATM operators to ensure that all the existing ATMs installed/operated by them are enabled for processing of EMV Chip and PIN cards by September 30, 2017.

While the POS terminal infrastructure in the country has been enabled to accept and process EMV Chip and PIN cards, the ATM infrastructure, on the whole, continues to process the card transactions based on data from the magnetic stripe, RBI said in a notification.

As a result, the ATM card transactions remain vulnerable to skimming, cloning, etc. frauds, even though the cards are EMV Chip and PIN based.

It has, therefore, become necessary to mandate EMV Chip and PIN card acceptance and processing at ATMs also, the notification added.

Contact Chip processing of EMV Chip and PIN cards at ATMs would not only enhance the safety and security of transactions at ATMs but also facilitate preparedness of the banks for the proposed “EMV Liability Shift” for ATM transactions, as and when it comes into effect.

“All new ATMs shall necessarily be enabled for EMV Chip and PIN processing from inception. For the purpose of switching, clearing and settlement of their ATM transactions banks, with the approval of their Board, may join any authorised ATM/Card network provider,” said RBI.

Further, in order to ensure uniformity in card payments ecosystem, RBI has also asked the banks to implement the said requirements at their micro-ATMs which are enabled to handle card-based payments.

The apex bank has also asked the banks to send a quarterly progress report to the Chief General Manager, Reserve Bank of India, Department of Payment and Settlement System, Central Office, Mumbai in the appended format for the quarter ending June/Sept/Dec/March by 15th of the month following the quarter end.