Pin number made mandatory for all debit card transactions

Daijiworld Media Network – Bangalore (EP)

Bangalore, Dec 6: Transactions using debit cards are becoming popular in the country. The Reserve Bank of India has made typing of pin mandatory in all transactions involving debit card. The new rules concerning use of debit cards are as follows:

a) RBI had made the rule of typing pin number mandatory from June, 2013 itself, in order to secure transactions using debit cards. The banks however, had requested for some time to upgrade their infrastructure to meet the need. The RBI then extended the time limit till November 30, 2013.

b) As per new rules, when the debit card is swiped, entering of the pin number is mandatory. Once you enter the pin, a chit regarding the transfer of amount will be given to you. You will have to sign it.

c) Banks will cancel the transaction if the machine does not ask for pin.

d) You will have to enter the pin number the way you enter it at the ATM.

e) Similar to ATM you will only be getting three chances to enter correct pin. The transaction using the debit card will automatically be cancelled after that. In case you can recollect the correct pin number, you can swipe the card once again which means the card does not get locked like in the ATM.

f) You should telephone to your bank if the pin is lost and ask for duplicate pin. You will be asked for your email id, date of birth and other details in view of security. The duplicate pin number will be posted to your address within the next seven to ten days.

g) The rules apply to transactions using debit cards only. They do not apply to online transactions over the internet. There are no changes concerning credit cards.

The main reason for the restrictions is to avoid frauds and prevent security lapses.

Transactions amounting to Rs 8,017.86 crore are conducted in the country on a daily basis in 5.54 crore shops on thirty six crores debit cards. Transactions worth Rs 52 crore per month are conducted in the ATMs.

As many as 1.8 million credit cards are in circulation in the country. If the transactions are compared to debit cards, purchases using credit cards are only Rs 4.14 crore.