Home › Circulars › RBI/2011-12/194

RBI mandates EMV chip & PIN for card-present transactions

Current · Source: Reserve Bank of India · RBI/2011-12/194 · issued 22 Sep 2011 · ~2 min read
Quick answerRBI has broadly accepted a Working Group's recommendations to secure card-present transactions. Banks must implement EMV chip & PIN cards, strengthen fraud risk management, and enable PIN at POS terminals for debit card transactions by June 2013, with Aadhaar-based biometric authentication as an alternative using magstripe cards as the form factor.
The rule, in the simplest words
How it plays out — a real example

A card issuance officer in Mumbai is working to implement the new RBI rule by issuing EMV chip & PIN cards to customers who have made purchases abroad. She is also ensuring that the bank's POS terminals are enabled to accept debit card transactions with PIN. Meanwhile, a merchant acquisition manager in Delhi is strengthening merchant sourcing and monitoring processes to prevent fraud. By doing so, they are both contributing to a more secure payment system in India.

What changed

RBI broadly accepted the Working Group's report on securing card-present transactions. Banks are directed to implement improved fraud risk management, strengthen merchant sourcing, and secure technology infrastructure by September 2012-2013. POS terminals must be enabled to accept debit card transactions with PIN and be ready for EMV chip cards by June 2013, and issuers must issue EMV chip & PIN cards to customers who have evidenced at least one purchase using their debit/credit card in a foreign location.

What it means for you

Banks must invest in upgrading POS infrastructure to support PIN and EMV chip cards, enhancing security against skimming and cloning. Issuers need to prepare technical systems for EMV card issuance, particularly for customers using cards abroad. This will reduce fraud but requires significant operational and cost adjustments.

What you must do

Who it affects

All scheduled commercial banks including RRBs, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Authorised Card Payment Networks

❓ Common questions

What is the deadline for enabling PIN at POS terminals?

All POS terminals must be enabled to accept debit card transactions with PIN by June 30, 2013.

What is the alternative to EMV chip & PIN cards?

Aadhaar-based biometric authentication can be used in lieu of PIN for card-present transactions, with magstripe cards continuing as the form factor.

Which customers must receive EMV chip & PIN cards?

Issuers must issue EMV chip & PIN cards to customers who have evidenced at least one purchase using their debit/credit card in a foreign location, by June 30, 2013.

📜 Read the original circular — full text as issued by RBI
Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 58 kb ) Security Issues and Risk mitigation measures related to Card Present (CP) transactions RBI/2011-12/194 DPSS.PD.CO.No.513/02.14.003/2011-2012 September 22, 2011 The Chairman and Managing Director / Chief Executive Officers All Scheduled Commercial Banks including RRBs / Urban Co-operative Banks / State Co-operative Banks / District Central Co-operative Banks/Authorised Card Payment Networks Madam / Dear Sir Security Issues and Risk mitigation measures related to Card Present (CP) transactions. As you are aware, in its endeavor to ensure that the payment systems operated in the country are safe, secure, sound and efficient, RBI has been taking proactive measures to contain the incidence of frauds in these systems. One such measure has been the move to secure Card Not Present (CNP) transactions, making it mandatory for banks to put in place additional authentication/validation for all on-line/ IVR/MOTO/recurring transactions etc. based on information not available on the credit/debit /prepaid cards. 2. Card Present (CP) Transactions (transactions at ATM and POS delivery channels) constitute the major proportion of card based transactions in the country. Although a PIN validation is necessary for cash withdrawal at ATMs, majority of the card transactions at POS are not enabled for any additional authentication (other than signature). A majority of the cards issued by banks in India are Magstripe cards and the data stored on such cards are vulnerable to skimming and cloning. 3. The increased usage of credit/debit cards at various delivery channels also witnessed the increase in the frauds taking place due to the cards being lost / stolen, data being compromised and cards skimmed/counterfeited. There is, therefore, an imperative need to secure such card based transactions (CP transactions) as well to protect the interests of the card holders. Towards this end, RBI constituted a Working Group in March, 2011, with representations from various stake holders to examine these aspects and recommend an action plan which would foolproof the ecosystem. The Group submitted its report in June, 2011 and its recommendations, inter alia, include use of Aadhaar (an initiative of the Unique Identification Authority of India) based biometric authentication for all CP transactions in lieu of PIN with Magstripe cards continuing to be the form factor.The need for a complete migration to EMV Chip and PIN based cards could be considered based on the progress of Aadhaar in about 18 months.The Group has also recommended measures to secure the technology infrastructure, improve fraud risk management practices and strengthen merchant sourcing process within a period of 12-24 months.The report was examined and the recommendations therein have broadly been accepted by RBI. (The report is available at http://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/SCP020611FS.pdf ) 4. Accordingly, banks and other stakeholders are directed to initiate immediate action for accomplishing the following tasks within the time indicated against each. a. Strengthening the existing Payment Infrastructure & Future Proofing the system : S.No. Task Completion by Report Reference 1. Implementation of improved fraud risk management practices September 30, 2012 Page 16 2. Strengthening Merchant Sourcing and Monitoring Process September 30, 2012 Page 17& 18 3. Securing the technology infrastructure (Unique Key per terminal- UKPT or Derived Unique Key per transaction- DUKPT/ Terminal line encryption- TLE) September 30, 2013 Page 15 b. Infrastructure/ readiness for card acceptance: S.No. Task Completion by Report Reference 1. Commercial readiness of acquiring infrastructure to support PIN for POS transactions.POS infrastructure to be ready for accepting EMV Chip cards. June 30, 2013 Page 23 2. Enablement of all POS terminals to accept debit card transactions with PIN June 30, 2013 Page 24 3. Issuers to be ready from technical perspective to issue EMV Cards June 30, 2013 Page 23 c. Debit/Credit Cards used internationally: S.No. Task Completion by Report Reference 1. EMV Chip Card and PIN to be issued to customers who have evidenced atleast one purchase using their debit/credit card in a foreign location. June 30, 2013 Page 24 5. The position of Aadhaar-based biometric authentication as a second factor of authentication for card present transactions would be reviewed towards the end of December, 2012, to assess the need for a complete switch over to EMV Chip and PIN Technology for card based transactions. It is, however, clarified that banks are free to migrate to EMV Chip and Pin based technology based on their commercial judgment and decisions taken by their Boards. It is further clarified that RBI is technology neutral with respect to type of PIN and its nature (static or dynamic). 6. Banks and other stake holders should monitor the progress of the action taken on a continuing basis and place detailed reports in this regard to their Boards on a quarterly basis. 7. The directive is issued under section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007). Please acknowledge receipt. Yours faithfully, Vijay Chugh Chief General Manager. 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/194 · issued 22 Sep 2011. The plain-English explanation above is BankPulse’s own independent summary.
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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All scheduled commercial banks including RRBs, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Authorised Card Payment Networks), your first concrete step on “RBI mandates EMV chip & PIN for card-present transactions” is: “Implement improved fraud risk management practices by September 30, 2012.” (RBI issued this 22 Sep 2011).

  1. Circular: RBI/2011-12/194 -- RBI mandates EMV chip & PIN for card-present transactions
  2. Issued: 22 Sep 2011
  3. Action required: Implement improved fraud risk management practices by September 30, 2012.
  4. Action required: Strengthen merchant sourcing and monitoring processes by September 30, 2012.
  5. Action required: Secure technology infrastructure with UKPT/DUKPT/TLE by September 30, 2013.
  6. Action required: Ensure POS terminals are enabled to accept debit card transactions with PIN and are ready for EMV chip card acceptance by June 30, 2013.
  7. Action required: Issue EMV chip & PIN cards to customers who have evidenced at least one purchase using their debit/credit card in a foreign location by June 30, 2013.
  8. Owner: ____________ Target date: ____________
  9. Board/committee approval needed? Y / N
  10. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6726&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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