Doing this may damage your debit/credit card forever
With banks across the country replacing the older magnetic stripe cards with EMV chip cards, the way we use ATMs have changed slightly. So, if you are using a new EMV chip card, then be sure to note be carried away by the way you used older ATM cards. Unlike magstripe cards, the new EMV cards need to be kept inserted in the ATM card slot during the transaction.
If you happen to insert and remove the new EMV chip card immediately then it might damage your card. While the new ATMs come with a card slot that looks like the older “insert and remove” variant, but it is actually not. The new ATMs require the chip cards to be in inserted inside the slot throughout the transaction. If you happen to forcefully remove the card thinking that the card has stuck, then it might damage the chip card permanently.Read more ↓
If you have just upgraded to using an EMV-based chip card, then note that you will have to insert the card, select banking options and then enter pin to process the transaction. The new ATM card will prompt you to take back the card just before the ATM dispenses cash. So, do not try to forcefully take out the card during the transaction.
The Reserve Bank of India (RBI) in 2015 had issued a directive to all bank across India mandating them to get rid of old magnetic stripe cards. This is because magnetic stripe cards can easily be skimmed. Following the RBI directive, banks took the initiative to replace all magnetic stripe cards with EMV chip cards recently.
In EMV cards, the payment data is secured on a chip-enabled payment card than on a magnetic stripe (magstripe) card. The biggest difference is that the former supports dynamic authentication, while the latter does not and the data is static. As a result, it is easier for fraudsters to copy data from a traditional magstripe card using skimming devices. EMV cards are claimed to be effective in combating counterfeit fraud with their dynamic authentication capabilities