What changed
RBI granted a one-time extension for banks and card networks to implement security measures for card present and electronic payment transactions. Acquirers now have until September 30, 2013, and issuers until November 30, 2013, to complete their respective tasks. The fallback option without PIN for domestic cards is permitted until November 30, 2013, while international cards used in India continue with the existing system.
What it means for you
Banks and card networks get additional time to resolve technical issues like field visits, certification delays, and re-carding problems, ensuring smoother transition without service disruption. However, after the new deadlines, any non-compliance will make the issuer or acquirer liable for losses from card misuse. This is a final extension, so banks must prioritize compliance to avoid financial penalties.
What you must do
- Ensure acquirer systems are fully compliant with September 22, 2011 and February 28, 2013 circulars by September 30, 2013.
- Complete issuer-side tasks and testing by November 30, 2013, including fallback option readiness.
- Enable fallback without PIN for domestic cards by November 30, 2013; maintain current system for international cards.
- Document all compliance steps to fix liability in case of customer complaints after deadlines.
- Communicate internally to avoid any further delays, as no extensions will be granted beyond these dates.
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
What is the new deadline for acquirers to complete security tasks?
Acquirers must complete all tasks from the September 22, 2011 and February 28, 2013 circulars by September 30, 2013.
What happens if a bank fails to meet the extended deadlines?
If a customer reports card misuse after the deadline, the issuer or acquirer that did not comply will bear the loss.
Is the fallback option without PIN allowed for international cards in India?
Yes, the current system for international cards used in India continues until further notice, based on service codes and jurisdiction mandates.