Bank Indonesia delays launch of chip-technology debit cards until 2021
Bank Indonesia has delayed the implementation of national standard chip and online six-digit PIN technology schedule until 2021
Bank Indonesia has delayed the implementation of national standard chip and online six-digit PIN technology schedule until 2021.
The central bank in circular dated 30 December 2015 said that all operators of ATM/Debit card are obligated to implement chip and online six-digit PIN technology on ATM/Debit card transactions by 31 December 2021.
The regulation was originally scheduled to come in to force from 31 December 2015.
“The extension of the implementation schedule of national ATM/Debit card standard is enacted after considering: the use of chip technology is one of Bank Indonesia’s policy strategies to improve the security of card-based payment instrument (APMK), the implementation of the national standard chip technology for ATM/Debit card is required to improve the efficiency of ATM/Debit card transactions, and the harmonization of chip technology and online 6-digit PIN implementation period of ATM/Debit cards with the Payment System policy in the future,” the central bank said in a press statement.
“In addition, the majority of ATM/Debit card Operators have yet to fully implement the national standard chip technology and online six-digit PIN, and the migration from magnetic stripe technology to chip technology administered by the Operators of ATM/Debit Card may be encouraged by policies that provide incentives towards the utilization of cards equipped with the chip technology,” the statement added.
Concurrently, the implementation of online six-digit PIN technology on ATM/Debit card that currently uses magnetic stripe technology is extended to 30 June 2017.
The central bank has also increased the maximum limit of cash withdrawals and transfers for ATM/Debit card equipped with the chip.