The old magstripe or magnetic stripe debit and ATM cards are no longer valid as of January 1
NEFT transfers through all banks are now free as the RBI has waived charges.
January 1 signals not only the beginning of the new year 2020, but also a reminder of several new rules that have come into force in the financial world since then. The new rules affect anyone with a debit card, a PAN card, and even those who attempt to withdraw cash from ATMs or make transfers online.
Debit and ATM cards:
From January 1, the existing debit and ATM cards with a magstripe or magnetic stripe will stop working. You can get it from your bank free of charge with a new EMV chip debit card. Both banks were required to turn old debit cards into new EMV-based ones, according to guidelines provided by the Reserve Bank of India (RBI).
“You need to get a new ATM card If your card is a magstripe card, as it will get blocked due to RBI directives to discontinue the operation of magstripe cards. If your card is an EMV Chip card, please get in touch with your branch and ascertain that,” SBI said on Facebook.
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If you can see a chip on your debit / ATM card's forehead, you already have an EMV chip card that needs no substitution. If it's lacking then you need a new one to replace it.
EMV cards come with a tiny microchip to shield customers against purchases that are fraudulent. Each time you make a transaction, it generates complex data that makes it impossible to replicate the token.
NEFT penalties waived:
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NEFT electronic transactions have been made by the Reserve Bank of India (RBI) with effect from December 16 as a 24-7 operation. And banks have now been allowed to suspend electronic NEFT charges for savings bank account holders since January 1. Many banks have previously made NEFT free. NEFT transactions made in branches of banks will continue to be paid as before.
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