After the diktat of the central bank following the hacking incident all the 28 commercial banks have switched to chip-based debit and credit cards from the traditional magnetic stripe cards.
According to the central bank, commercial banks have complied with the central bank’s direction ahead of the given deadline and switched the plastic cards. After the incident in which Chinese hackers withdrew millions of rupees from automated teller machines (ATMs) of different banks and considering the glaring lapses in security related to the banking system, the central bank – on September 5 – had directed banks to provide their customers only chip-based cards within three months.
Concluding that use of magnetic stripe cards were one of the many challenges for banking security, the central bank had asked banks and financial institutions (BFIs) to replace the traditional magnetic stripe cards with chip-based cards, which are considered comparatively more secure.
Chinese hackers were found to have hacked banks by using magnetic stripe-based cards of different banks. Along with replacing magnetic stripe debit and credit cards with the chip-based cards, commercial banks have also stopped issuing the unsecured magnetic stripe-based cards.
After the hacking incident, the central bank also asked banks to make all point-of-sale (PoS) terminals and ATMs chip-readable and ensure 24/7 surveillance at ATMs.
The central bank is also asking banks and financial institutions to invest a certain percentage of their profit in IT security.
According to the central bank, commercial banks have complied with the central bank’s direction ahead of the given deadline and switched the plastic cards. After the incident in which Chinese hackers withdrew millions of rupees from automated teller machines (ATMs) of different banks and considering the glaring lapses in security related to the banking system, the central bank – on September 5 – had directed banks to provide their customers only chip-based cards within three months.
Concluding that use of magnetic stripe cards were one of the many challenges for banking security, the central bank had asked banks and financial institutions (BFIs) to replace the traditional magnetic stripe cards with chip-based cards, which are considered comparatively more secure.
Chinese hackers were found to have hacked banks by using magnetic stripe-based cards of different banks. Along with replacing magnetic stripe debit and credit cards with the chip-based cards, commercial banks have also stopped issuing the unsecured magnetic stripe-based cards.
After the hacking incident, the central bank also asked banks to make all point-of-sale (PoS) terminals and ATMs chip-readable and ensure 24/7 surveillance at ATMs.
The central bank is also asking banks and financial institutions to invest a certain percentage of their profit in IT security.
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