Yes, we all have to switch to the new EMV chip based cards within the stipulated time. According to the instructions of SBI, issued few months earlier, 31st December 2018 was the last date for applying for the new cards for their customers. Different banks will issue guidelines to their customers for this replacement and we have to follow accordingly, otherwise the existing cards will be blocked within the specified time.
Now the technology used in EMV cards are much more stronger than the traditional magnetic stripe based cards. In EMV cards, the information stored are encrypted differently during each transaction which is not static like the magnetic striped ones, so they are more secure than the traditional ones.
The debit/credit card transactions can be of two types. Card present and Card not-present. Card not-present transactions are those when somebody has all the card information to withdraw from the account and fraudulently use the information to make a transaction. This type of Card not-present transactions, where fraudsters have all the necessary information for making the transaction, cannot be checked by the new EMV chip based cards but it can help to reduce the frauds that take place in Card present transactions. Fraudsters use skimming devices in ATMs to copy information of the cards and this copying is much easier for magnetic stripe based cards having static information. Since EMV uses unique encryption method for each transaction, it will be very difficult to copy those info with the skimming devices. So, we can expect much more secure transactions by using these new chip based cards.
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