Sunday, 23 September 2018

Crores of customers will have to change credit and debit cards.

Banks have decided to close the magnetic stripe debit and credit card. As a result, millions of debit and credit card holders will have to change their cards in the coming days.

Currently there are two types of cards. One type of card has a magnetic stripe at the back. There are chips in other types of cards. According to RBI's order, the magnetic card will now be replaced with a chip card. For December 2018, the deadline has been given. Banks will then close the magnetic stripe cards.

RBI has said that the technology of Magnetic Stripped card is old and such cards have been discontinued. This card is not even secure as well. That is why it is being closed.

Currently, there are 3.90 crore active credit cards and 9.40 crore debit card holders in the country.

State Bank of India has given the date of December 31 to change the credit card to customers. After that the bank will block the magnetic striped card. Customers have to pay no charge to change the chipped cards instead of magnetic.

Read in Gujarati