Why all banks replacing the traditional debit cards with the new cards having the EMV Chip?

As per the Reserve Bank of India guidelines (RBI/2014-15/589 DPSS (CO) PD No.2112/02.14.003/2014-15 dated May 07, 2015 and subsequent update http://dpss.co.pd.no .448/02.14.003/2015-16 on August 27, 2015) all Magstripe Debit Cards issued by the banks have to be migrated to EMV Chip Debit Cards by 31-Dec-2018.
Why all banks replacing the traditional debit cards with the new cards having the EMV Chip?
Based on RBI guidelines, Bank is replacing the Magstripe Debit with more secure EMV Chip Debit Cards. After issuance and dispatch of such Debit Cards, Bank will block the old Magstripe Debit Card after giving sufficient time to the Cardholder.
Why all banks replacing the traditional debit cards with the new cards having the EMV Chip?
This replacement for debit cards is started by all banks. It is an order from RBI to all banks to offer their customers EMV chip cards free of cost. Now to your question, why this is being done so? Because EMV chip cards are quite secure compared to the traditional Mag-Stripe Cards, further if you have heard of contactless payment systems like Visa’s Paywave and MasterCard’s PayPass requires a chip which is further connected to the antennae embedded inside the card.

So, in short you can say that this is being done to increase the security of debit cards. To know more about EMV Chip Cards follow this Link - EMV Wikipedia
Why all banks replacing the traditional debit cards with the new cards having the EMV Chip? Why all banks replacing the traditional debit cards with the new cards having the EMV Chip? Reviewed by SHERE KHOJRAHA on February 20, 2019 Rating: 5

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