EMV is a payment method that operates using a technical standard created by the three companies, Europay, Mastercard, and Visa. The acronym EMV also represents the companies' names. EMV cards are integrated with the embedded chip of prepaid and credit cards. The chip present on the card is extremely difficult to copy and thus enhances the level of security during transactions. The embedded chip on the card encodes every transaction separately.
For Point of Sale (POS) terminals, the card owner requires a PIN (Personal Identification Number) for carrying out money transactions. This provides additional security for the user. EMV ATMs hold the card to read the information during the transaction.
In contrast to this, Non-EMV automated teller machines or ATMs are the machines that detect and read the card information from the magstripe and do not hold the card at the time of transaction. The magstripe on the card provides restricted information like the PAN, account holder's name, expiry date, and CVV values.
At the end of 2020, Punjab National Bank (PNB) declared that customers would not be able to withdraw more than Rs 10,000. For larger transactions from the Non-EMV ATMs, an individual can withdraw money after providing the OTP (One Time Password). In February 2021, the bank shut down all non-EMV ATMs.
The Reason for Shutting Down Non-EMV ATMs
ATM crimes have increased worldwide. Banks are gradually moving away from the old school ATMs that only require swiping the card to restrict the frauds related to money transactions. With the shut down of non-EMV ATMs, all the machines that do not hold on to the card during the transaction will be non-functional.
EMV cards are observed to be much more secure and reduce the chances of criminals hacking the cards. These cards were introduced by the RBI (Reserve Bank of India) in May 2015. The RBI has recommended using EMV ATMs instead of non-EMV ATMs and has asked banks to slowly phase out the magnetic cards and transition towards EMV chip cards.
One of the largest public sector banks, Canara Bank, was the first bank to shift from non-EMV ATM cards to EMV cards. The bank has more than 6,300 branches and 10,000 ATMs. It has made a significant achievement by offering improved authentication and security to its retail banking customers.
FAQs about Non-EMV ATMs
Non-EMV ATMs are automatic teller machines that read the magnetic stripe on the card during swiping and do not hold the card during the transaction.
- When did Punjab National Bank close the transactions from non-EMV ATMs?
Punjab National Bank closed transactions from non-EMV ATMs from February 1st, 2021.
- Why have banks closed transactions from non-EMV ATMs?
Banks have closed transactions from non-EMV ATMs to protect their customers from fraudulent activities and keep them secure from criminal scammers and hackers.