RBI reviews steps taken by banks to counter debit card fraud

Reserve Bank of India (RBI) today convened a meeting of senior officials from select banks, National Payment Corporation of India and card network operators to review the steps taken by various agencies to contain the adverse fall out of certain card details alleged to have been compromised.

RBI said it has come to its notice on 8 September 2016 that details of certain cards issued by a few banks had been possibly compromised at ATMs linked to the ATM Switch of one of the service providers. The issue is currently being investigated by an approved forensic auditor, under PCI-DSS framework, it added.

Although the number of cards misused, as per currently available information, is few, RBI said, as a matter of abundant precaution, card network operators concerned were earlier advised to share the details of cards used during the period of such exposure. Based on this, banks have been taking necessary remedial action to avoid any potential abuse of such cards in future by unscrupulous elements and to protect the interest of their customers.

Banks too have taken measures, including advising the customers to change PIN, blocking payments at international locations, reducing the withdrawal limits, monitoring unusual patterns, replacing the cards and  re-crediting the accounts of cardholders for amounts wrongly debited.

RBI has emphasised the need for an early implementation of the framework so that possibility of such incidents happening in future is minimised and in the event of such incidents, containment measures are taken immediately.

Banks have also been advised to review the extant cyber security arrangements, emphasising an early implementation of this framework so that possibility of such incidents happening in future is minimised.

RBI also urged the cardholding bank customers not to share the PIN and passwords and to periodically change them without share these with anyone.