RBI To Come Up With New Norms On Debit Cards

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The government has asked the RBI and other banks to submit a detailed report on the debit card security breach issue, which is expected to be released in November.

Over 3.2 million debit cards were detected under India’s largest banking security breach. Most customers seem to pay no heed to bank advisories requesting them to change their passwords and PINs, the Reserve Bank of India (RBI) has decided to issue new directives in this matter.

“We have sought a report in the debit card issue. The idea is to contain the damage,”finance minister Arun Jaitley said.

There are over 690 million debit card holders in the country.Estimates from the various loan providers, including Citibank, ICICI Bank and a few public sector banks have issued reports that only 10% to 15% of cardholders have changed their personal identification number (PIN) after the incident.

“We keep sending advisories to customers from time to time to change passwords and PIN, but very few follow instructions,”said a senior Citibank official, who decided to remain anonymous.

Between April 2011 and September 2014, banks have reported 27,614 credit-card related frauds and another 3,835 debit-card-related deceptions.

Various sources revealed that most of the customers do not take the advisories. The Reserve Bank of India is likely to issue a set of directives to all banks in the country.

SBI has decided to replace over 600,000 cards for free.”Before the breach of financial data, SBI had sent out an advisory to customers asking them to change their PIN, but only 7% took note,” a senior government official said.

“There is no cause for alarm, the integrity of the IT system of banks is robust and whatever action is required, the government will take promptly,” economic affairs secretary Shaktikanta Das added.

“As you know, in the cyber world, the trail will always be there and it will be our effort to locate, to sort of trace the exact trail and locate the point of origin of where this has happened, and the government will definitely act on this.”

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