The Reserve Bank of India refused to give extension on its given deadline for security upgrade on credit card swipe machines. The RBI had given orders to banks to compensate its cardholders within seven days. This would take effect if any fraud occurs on non-compliant terminals.

RBI said that once the bank failed to refund its cardholders the disputed amount, it would pay a penalty of INR100 a day. The penalty would last until banks had repaid its customers. Currently, cardholders had been having a hard time in disputing amounts that occurred in credit card frauds.

The move had made banks in India to see the seriousness on card security policy imposed by the country's central bank. This was after the increasing rate of credit card frauds in India. RBI had asked banks to add security features on its credit cards to ensure customer security. The security feature included an electronic chip and a secret PIN which cardholders are required to punch in the terminal to authenticate payment for every purchase. The security feature for credit cards was effective from July 1. However, banks in India were behind schedule in issuing chip cards and upgrading terminals.