Networks including Visa, MasterCard, Star etc want all banks to implement what is known as the triple data encryption standards (Triple DES) in ATMs that were purchased before 2002.
KOLKATA: Banks have been asked to upgrade their older ATMs by July 1, 2007, to ensure higher security standards. Networks including Visa, MasterCard, Star etc want all banks to implement what is known as the triple data encryption standards (Triple DES) in ATMs that were purchased before 2002. This new system will help prevent sophisticated frauds.
Santanu Mukherjee, country manager, south Asia, Visa International Asia Pacific, said: “In the interest of security, Visa has insisted that all banks in the country comply with this mandate in the required timeframe. This is an international mandate and all regions have to comply within their specified time period. The US and the Asia Pacific region have to comply by 2007”.
Some banks which have the earlier lot of ATMs feel that it may be a bit difficult at this stage to go in for incremental investments for their machines, which normally have a life of 10 years or so.
With Visa fixing its deadline by July 1, 2007, some banks felt that the time was not yet “ripe for incremental investments of ATMs, in India to move to triple DES”.
“We have been spending a lot in technology but the required returns are yet to be seen. Becoming triple DES compliant will mean an additional spend of an average of Rs 80,000 per ATM, which is difficult at this juncture,” a banking official with a public sector bank said.
“Some of the member banks have expressed difficulties to meet the deadline for upgrading the pre-2002 ATMs. We had requested Visa to extend the deadline by another two or three years say up to July 2010”, an Indian Banks Association (IBA) official said.
But given the fact that security measures are to be tightened on specific ATMs, it is unlikely that Visa will bear the onus in case something happens on these older lot ATM machines.
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