Biometric (finger print/retina scan) captured by UIDAI can be used as proof to protect against counterfeit and lost & stolen card fraud
Mumbai : In order to ensure security in card- based payment transactions taking place at point of sale (POS) terminals or at ATMs, the Reserve Bank advised banks that they may adopt Aadhaar as additional authentication or move to EMV chip and pin technology.
“In respect of cards, not specifically mandated by the RBI to adopt EMV norms, banks may take a decision whether they should adopt Aadhaar as additional factor of authentication or move to EMV chip and Pin technology for securing the card present payment infrastructure,” RBI said in a notification. However, it said all new card present infrastructure has to be enabled with both EMV (Euro pay MasterCard Visa) chip and Pin technology and Aadhaar acceptance.
Biometric (finger print/retina scan) captured by UIDAI can be used as authentication to protect against both domestic counterfeit and lost & stolen card fraud as the cardholder has to be physically present at the POS terminal/ATM to authenticate the transaction. Even if the card is counterfeited, the fraudster will not be able to use the card as biometric of the customer would be required. For securing card and electronic payment transactions, RBI had set up a working group that had recommended evaluation of UIDAI’s Aadhaar as an effective alternative for additional factor of authentication for domestic transactions.
Currently, transactions using cards at POS do not require additional authentication in majority of the cards. However, data stored in magnetic stripe is vulnerable to skimming. EMV chip card and PIN protects against both counterfeit (skimming) and lost & stolen card fraud.