PIN-based authorizations should be made compulsory for all debit and credit smart card transactions at the point of sale instead of allowing cardholder signatures to authorize transactions, a Reserve Bank of India committee is recommending.
To facilitate this changeover, non-PIN POS terminals should be phased out through 2013, the central bank’s Committee on Customer Service said in an Aug. 3 report on bank customer-service initiatives in India.
The same report also recommends that India’s issuers place cardholders’ facial images on their cards (
In addition, as the country transitions to chip-based EMV cards over the next two years, new chip cards issued for now also should continue to have a magnetic strip to enable transactions at ATMs that have not yet converted to chip card acceptance, the report says.
The committee also suggests that the card networks and processors follow a merchant-fee policy that favors debit card use, which over time will reduce the dependence on cash for payments. Banks also should issue biometric ATM cards to senior citizens and illiterate customers who do not feel comfortable using ordinary cards and make the necessary hardware changes to accommodaand fingerprint authentication.
To enhance security, the panel suggests that cameras be placed near ATMs to capture clear images of the person conducting transactions, and deployers should provide appropriate lighting inside the ATM booth to improve safety, the panel said.
The panel also recommends that banks address all grievances related to mobile banking and not refer customers to mobile-service providers such telecommunications operators.
The central bank is soliciting industry and public comments on the panel’s recommendations through Aug. 27, after which it will review the feedback before issuing the final rule.
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