SBI to switch to EMV chip and PIN-based cards from 1 January; introduce OTP-based withdrawals
27 Dec 2019
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State Bank of India (SBI), the country's biggest lender, will discontinue its old magnetic strip-based credit and debit cards from 1 January. Accordingly, the state-run lender said in a tweet, it will deactivate all old magnetic strip-based cards by 31 December, irrespective of the card's validity period.
SBI said, as per RBI guidelines, it has to replace all old magnetic strip-based ATM-cum-debit and credit cards of its customers with EMV chip and PIN-based hi-security cards.
"Apply now to change your Magnetic Stripe Debit Cards to the more secure EMV Chip and PIN-based SBI Debit card at your home branch by 31st December 2019. Safeguard yourself with guaranteed authenticity, greater security for online payments and added security against fraud,'' the bank said in a tweet.
SBI also urged its customers and cardholders to replace the old magnetic strip-based credit and debit cards with high-security EMV Chip-based cards as effective 1 January 2020, magnetic strip cards will not be accepted at the ATMs or at merchant establishments.
Those holding SBI cards with the chip implanted in them, they need not worry as those cards will be valid beyond 1 January.
Since the bank is sending the replacement cards by post, so the customers need to inform the bank in case they have to change their current address, otherwise, the new card will be returned to the bank with the remark - ''addressee not found''. The bank has also clarified that this replacement of the card is done free of cost.
"Upgradation of Magstripe Debit Cards to EMV Chip Cards for enhanced security and towards compliance of the Reserve Bank of India (RBI) guidelines. Esteemed customers may please note that Magstripe Debit Cards blocked by them will remain blocked permanently. They are requested to apply for replacement EMV Chip Cards, free of cost, through online SBI, or through their home branch," SBI had said in a statement earlier.
SBI also said it would launch one-time password (OTP)-based cash withdrawal at all its ATMs from 1 January 2020. However, the facility won't apply in case of transactions made by SBI card holders at any other bank's ATM.
"Introducing the OTP-based cash withdrawal system to help protect you from unauthorised transactions at ATMs. This new safeguard system will be applicable from 1 January 2020 across all SBI ATMs," SBI said in a tweet.
The new OTP-based ATM withdrawal will be applicable for transactions above Rs10,000, between 8 am and 8 pm. Customers withdrawing cash from SBI ATMs will receive an OTP on their mobile number registered with the bank. However, the facility won't apply in case of transactions made by SBI card holders at any other bank's ATM.
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