The Reserve Bank of India has refused to extend the deadline for banks to comply with improved security on card payment terminals.
The central bank has also ordered banks to refund customers the cost of any fraudulent credit card transactions on non-compliant PoS terminals.
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A statement issued by the Reserve Bank of India said: “Various banks have approached us, seeking further extension of the time line of September 30, 2013 for complying with the task of securing the technology infrastructure.”
“It has been decided not to grant any further extension of time. Accordingly, banks not complying with the requirements shall compensate loss, if any, incurred by the cardholder using card at PoS terminals not adhering to the mandated standards.”
The central bank has ordered that banks must refund the victims of fraud within seven days or pay them an additional INR100 ($1.6) every day until the date of refund. Currently, resolving disputes can take weeks.
Customers will be refunded by the issuing bank, who will then claim the money back from the acquiring bank.
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By GlobalDataFigures in the industry have praised the Reserve Bank of India’s firm approach, calling it an indication that the central bank is serious about card security.
The central bank had initially ordered banks to upgrade their security and incorporate chip and PIN by 1 July, but had to extend the deadline after banks said they were not ready.
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