Bank Indonesia Determines NSICCS as the National Standard Chip Technology for ATM and/or Debit Cards - Bank Sentral Republik Indonesia
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August 13, 2020
Bank Indonesia determines National Standard Indonesian Chip Card Specification (NSICCS) as the National Standard Chip Technology for ATM and/or Debit cards to be used by all providers of ATM and/or debit cards in Indonesia. The determination of NSICCS as the National Standard Chip Technology for ATM and/or debit cards is conveyed in a meeting attended by the Deputy Governor of BI, Sugeng, banks, and Association of Indonesian Payment System Operators (ASPI) on Wednesday, 21 June 2017, in Jakarta. In line therewith, Bank Indonesia has also determined ASPI as the NSICCS operator to ensure its implementation, including maintaining and developing a National Standard by considering security, efficiency, technology development, industrial needs, and national interest.
NSICCS application in ATM/debit cards primarily aims to increase transaction security in using ATM and/or debit cards. In addition, this implementation boosts the creation of instrument interoperability in line with the National Payment Gateway and supports the creation of payment system efficiency through reasonable transaction costs and by observing consumer protection. This step is an important momentum to realize safe, efficient, smooth, and reliable payment system by observing access expansion and consumer protection and prioritizing the national interest.
In addition to NSICCS application, as one of the efforts to increase the security of payment transactions by cards, Bank Indonesia through Circular Letter of Bank Indonesia No.17/52/DKSP dated 30 December 2015, determines that no later than 30 June 2017, all ATM and debit cards, including those with magnetic stripe, must use 6-digit Personal Identity Number (PIN). Chip technology and 6-digit PIN aim to increase transaction security, mitigate fraud risk, and align ATM and/or debit card management with the international best practice.
NSICCS and 6-digit PIN must be applied by all operators of ATM and/or debit cards, namely principal, switching, issuer, acquirer, Clearing Agency, and Settlement Agency. NSICCS technology is also applied to ATM, EDC, and all systems used to process transactions by ATM and/or debit cards. In accordance with the Circular Letter of Bank Indonesia, full implementation is targeted to complete by 31 December 2021. However, the implementation is made in the following phases:
  • Phase 1 (by 30 June 2017): to complete (1) host and back end system (2) ATM/EDC device, new ATM and debit cards must be equipped with national standard chips, and (3) the use of 6-digit online PIN on all ATM and debit cards, primarily those still using magnetic stripe technology.
  • Phase 2 (by 31 December 2018): to implement that 30% of the circulating ATM and debit cards have used chip technology and 6-digit online PIN.
  • Phase 3 (by 31 December 2019): to implement that 50% of the circulating ATM and debit cards have used chip technology and 6-digit online PIN.
  • Phase 4 (by 31 December 2020): to implement that 80% of the circulating ATM and debit cards have used chip technology and 6-digit online PIN.
  • Phase 5 (by 31 December 2021): to implement that 100% of the circulating ATM and debit cards have used chip technology and 6-digit online PIN.
As a regulator, Bank Indonesia will consistently strengthen synergy, especially with ASPI and industries, to be able to achieve the targeted efficient, secure, and reliable national payment system, which continuously prioritizes the national interest. The general public can also participate to constantly and collectively ensure and follow the implementation phases to run smoothly and reach the goal to strengthen cashless transaction security, primarily cashless transactions by ATM and/or debit cards.
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