From December 1st, 2013 onwards, the Reserve Bank of India has made it mandatory for debit card holders to use their ATM PIN for carrying out debit card transactions at any retail store.
To put this system into place, all banks were instructed by the RBI to upgrade their Point of Sale (PoS) infrastructure. The deadline was November 30th.
Parag Rao, head of card payment products and merchant acquiring service at HDFC Bank said, “Our back-end system is in place and we have made changes in all our PoS and merchant outlets to accept PIN (basically ATM PIN) from tomorrow.”
The primary advantage of this measure is clearly the reduction in cases of fraud. Without this system in place, if your card goes into the wrong hands, then it will be used for illegal transactions at retail stores that accept card payment.
However, one plausible disadvantage of punching your PIN at a merchant store is revealing your PIN to others which include the cashier and other customers in your proximity.
So here are some Dos and Don’ts to remember while you are entering your PIN at a retail store for a debit card transaction:
In the wake of this security measure mandated by the RBI, State Bank of India has issued a notice advising customers not to hand over their ATM-cum-Debit card to anyone.
The RBI has also stated that, any losses incurred by customers due to misuse of their cards post 30th November, will be borne by the bank the customers are associated with. Needless to say, if you happen to lose your card and incur any loss, then approach your bank immediately.
Here’s a blog post where Quick Heal CTO, Mr. Sanjay Katkar speaks about how to recover your money if your bank account is hacked or your card details are stolen.