RBI makes punching PIN mandatory for debit card transactions done every time
With an aim to minimize frauds, RBI has made it mandatory for debit card holders to punch in their PIN numbers every time they use the card. In June 2013, the central bank had extended the deadline for implementation of mandatory PIN punching at Point-of-Sales (PoS) and merchant outlets till November 30, 2013 following representation of banks.
Why this step by the RBI to make punching PIN mandatory for debit card transactions done every time?
The PIN functions as another layer of security for the debit card which reduces the chances of fraud. While using it at PoS, merchants will first swipe the cards at a PIN enabled PoS terminal and punch in the transaction amount. That will be followed by customers punching their PINs to complete the transaction.
Categories: Business, Economy & Banking