10 things on new debit card PIN rule

Payment through cards has become increasingly popular in India. To maintain security and keep up with the changing times, the Reserve Bank of India has mandated debit card holders to punch in their PIN numbers during every transaction from December 1.

Here are some things you need to know about debit card usage:

1) The RBI rule was first enforced in June 2013 to act as an additional layer of security in transactions. However, banks had requested for some time to update the back-end infrastructure. The RBI had then extended the deadline to November 30.

2) As part of the rule, customers will now to have punch in the PIN number after the card has been swiped or inserted in the small point-of-sales (PoS) terminal. This is the small machine that shops and merchants use for the payment. Once the PIN has been entered, you will get the transaction charge slip, which has to be signed.

3) If the PoS terminal is not updated to ask for PIN, and the transaction proceeds without it, then the bank will decline the transaction.

4) The PIN being used here is the same that a customer uses at an ATM or Automated Teller Machine to withdraw money. Do not get confused with the ‘transaction password’ used for online banking.

5) You will get only three chances at punching the right PIN number. After that, your transaction will automatically be cancelled. If you manage to remember your PIN number after three attempts, you can still use your debit card. However, the transaction will have to be started all over again from scratch.

6) If you have forgotten your PIN number, call your bank to order for a duplicate PIN number. You will, however, have to verify your personal details like address, email id, date of birth, etc., for security purposes. This will be posted to your address within 7-10 working days.

7) This rule is mainly for debit cards being used for physical transactions only. There is no change in the way internet transactions are undertaken. The rules for credit cards too remain unchanged.

8) This is part of the measures undertaken to deal with frauds and security breaches. Other measures include addition of an Europay, MasterCard or Visa chip on the card, establishment of real-time fraud monitoring system, limit on transactions, immediate notifications, etc.

9) There are over 36 crore debit cards being used in India to conduct as many as 5.54 crore merchandise transactions per month amounting to Rs 8,017.86 crore. There are as many as 52 crore transactions being conducted using ATMs in a month, as per the latest RBI data.

10) In contrast, there are 1.8 million credit cards in use. The total number of transactions being conducted at PoS counters too is less at 4.14 crore. However, the total value of transactions is higher than that for debit cards at Rs 10,748 crore.

This work is produced by Simplus Information Services Pvt Ltd. Customer engagement through content. Like this article? Click here for more articles from the same provider.

Latest News

  • Sharp asks turnaround fund to take stake worth up to 30 billion yen -N …
    Sharp asks turnaround fund to take stake worth up to 30 billion yen -N …

    Sharp Corp has asked a corporate turnaround fund, Japan Industrial Solutions, to take stake of up to around 30 billion yen to help with the embattled electronics maker's restructuring, the Nikkei business ... …

  • Dollar in demand, shares on edge for jobs report

    The dollar was in high demand in Asia on Friday as bulls wagered a looming U.S. jobs report would add to the chance of rate hikes there, even as the European Central Bank embarks on a trillion euro campaign of bond-buying. …

  • NHTSA could tap unexercised authority to speed Takata recalls

    U.S. auto safety regulators are considering unprecedented steps to speed up the replacement of potentially deadly Takata Corp (7312.T) air bags in millions of cars that remain on American roads despite massive recalls initiated by automakers. In a letter dated March 3, National Highway Traffic Safety Administration chief Mark Rosekind told Senator Bill Nelson that regulators had the authority to increase supply of replacement parts by requiring more manufacturers to produce them. If the NHTSA …

  • AbbVie CEO defends Pharmacyclics deal to sceptical investors
    AbbVie CEO defends Pharmacyclics deal to sceptical investors

    AbbVie Inc chief Richard Gonzalez fought two other drugmakers to "the bitter end" to buy Pharmacyclics Inc (PCYC.O) for its hot-selling Imbruvica cancer drug, but may have a harder time convincing investors it is worth $21 billion. Since then, some shareholders have questioned how the company will protect its best-selling drug Humira, for arthritis, against new rivals when it loses patent protection in late 2016. "AbbVie is taking a hit today because of the dilution and because they look a …

  • Oil falls in volatile trade on supply worries, dollar and Iran
    Oil falls in volatile trade on supply worries, dollar and Iran

    Oil closed lower on Thursday in volatile trade, as a soaring dollar and the U.S. pursuit of an Iranian nuclear deal offset earlier gains from supply concerns in Libya and Iraq. Libya's declaration of force majeure on nearly a dozen of its oilfields due to security concerns and arson attacks by Islamic State militants on Iraqi oil wells helped prices climb during the European session. In New York trade, the market came off its highs after the dollar hit 11-1/2 year highs against the euro, …

  • Exclusive - Commerzbank nears $1.4 billion-plus settlement with U.S.:  …
    Exclusive - Commerzbank nears $1.4 billion-plus settlement with U.S.:  …

    Commerzbank AG (CBKG.DE) is nearing an agreement to pay U.S. authorities more than $1.4 billion to settle allegations it violated U.S. sanctions and a separate investigation that stemmed from the Olympus Corp (7733.T) accounting scandal, according to two people close to the case. Margarita Thiel, a spokeswoman for Commerzbank, Germany's second-largest lender, declined to comment. The other agencies include the U.S. Department of Treasury, the Federal Reserve, the Manhattan District …

  • Euro sinks to 11-1/2-year low, bonds gain after ECB
    Euro sinks to 11-1/2-year low, bonds gain after ECB

    The euro fell to an 11-1/2-year low against the dollar on Thursday as U.S. and euro zone bond prices rose, after the European Central Bank spelled out its 1 trillion-euro stimulus plan that begins next ... …

  • Factbox - How a monetary policy committee in India could look

    India's government and central bank are set to consider proposals for the formation of a monetary policy committee that would take key decisions like interest rate changes, but have raised concerns over ... …

DON'T MISS

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    26.45+1.20+4.75%
    SUZLON.BO
    17.90-0.25-1.38%
    SRSREAL.BO
    19.15-0.50-2.54%
    UNITECH.BO
    28.80+0.85+3.04%
    JPASSOCIAT.BO
    12.850.000.00%
    SAMLEPU.BO
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
    14.000.000.00%
    ZPPOLYSA.BO
    126.00+21.00+20.00%
    PUNJABCHEM.BO
    546.80+91.10+19.99%
    AEGISLOG.BO
    1,203.75+200.50+19.99%
    SMLISUZU.BO
    64.60+10.75+19.96%
    AARYAGLOBL.BO
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg
    9.97-140.83-93.39%
    PUROHITCON.BO
    13.12-114.61-89.73%
    SAPL.BO
    1,823.400.000.00%
    PERSISTENT6.BO
    858.400.000.00%
    YESBANK6.BO
    415.300.000.00%
    UPL6.BO

QUOTES

 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.