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Science
19 Jan 2019

How to use ATMs with security features for chip-based cards

How to use ATMs with new security features

On January 1, the Reserve Bank of India enforced its decision to make microchip-based debit/credit cards mandatory in India.

The move, as several banks notified, left old magstripe-based cards useless.

But, it wasn't just a card upgrade; RBI had also instructed banks to calibrate the ATMs.

Let's know more about these changes.

In context

How to use ATMs with new security features
RBI's decision to upgrade cards

Upgrade

RBI's decision to upgrade cards

Months ago, all public and private sector banks had started notifying their customers to upgrade their debit/credit cards to new chip-based EMV smart cards.

They were given a deadline of December 31, post which the 'chip-less' cards had stopped functioning at ATMs as well as POS terminals.

The goal behind forcing this upgrade was to make users switch to a more secure payment method.

ATM upgrade

However, card upgrade wasn't the only change

Now, with smart cards in use, another element of a card-based transaction is changing: the ATMs.

As per RBI's directive, all ATMs across the country are being re-calibrated to read information from the chip of EMV cards.

And with this, they will now be latching on to your debit card as long as the transaction is in process.

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So, you can't remove the card while transacting

Card removal risk

So, you can't remove the card while transacting

Previously, you could insert and remove a card from an ATM and continue with the process of withdrawing money.

But, on an upgraded machine, your card will remain fixed unless the transaction has been processed and the money has been dispensed, like on POS machines.

If you'll try pulling it out in advance, the card could get damaged, especially the critical chip part.

Banks are notifying customers about this change

"We have upgraded the security features at our ATMs and Recyclers," an Axis Bank message notifying about this change read. "Your card will be latched during the course of your transaction. Please remember to collect your card before you leave the ATM/Recycler."

Tip

Be careful and look for light indicator while withdrawing money

Having said that, it's important to note that not every ATM has been upgraded and you may encounter an old machine as well.

But, if you find a new one, there will be some instructions about the new 'latching feature' or an LED indicator which will turn 'red' to show when the card is latched and 'green' to inform when you can remove it.

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Most asked questions

How to new chip-based card?

What would be the benefit of new chip-based card?

Are SBI ATM also being upgraded?

Are all ATMs going to be upgraded?

More questions

How to new chip-based card?

Asked on 19-01-2019 by Divya Jaiteley

Answered by NewsBytes

If your card is not working, you can get a new chip-based card by contacting your home branch or using net banking services.

What would be the benefit of new chip-based card?

Asked on 19-01-2019 by Ananya Rangarajan

Answered by NewsBytes

Chip-based cards are more secure, designed for the purpose of protecting users from phishing and other ATM scams.

Are SBI ATM also being upgraded?

Asked on 19-01-2019 by Aanya Chavan

Answered by NewsBytes

Yes, SBI and all other public and private sector banks are in the process of upgrading ATMs.

Are all ATMs going to be upgraded?

Asked on 19-01-2019 by Aanya Mittal

Answered by NewsBytes

Yes, all ATMs are in the process of being upgraded to the new method.

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