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Indian banks looking to smart card technology
24 Sep 2010

A host of Indian banks are considering updating their bank cards to include smart card technology, according to reports.

The Hindu Business Line has revealed that HDFC Bank is already issuing chip-based cards, which also include a traditional magnetic stripe, to its customers.

HDFC Bank claims the new cards are more secure as it is harder for criminals to copy details, while they also have a longer life span.

Oriental Bank of Commerce and Indian Bank are also now considering switching to chip-based smart cards.

Shubhalakshmi Panse, executive director of Vijaya Bank, claimed there are still obstacles to mass deployment of the cards.

She told the news provider: "The ATM's card reader has to be changed, and all existing payment cards have to be replaced.

"There has to be a concerted effort wherein banks come together along with ATM manufacturers, point-of-sales machine manufacturers etc."

Ms Panse added that the cards could be multifunctional and include identification and loyalty features.