The Reserve Bank of India had asked all banks to move to EVM chip-based cards in late 2018 to prevent card related frauds and tighten security. Almost all public and private sector banks have adopted the new technology which is being implemented across the country in stages.
Most ATMs in major urban and semi-urban areas have been upgraded to accept only chip-based cards, which means old cards cannot be used to withdraw money. However, along with the new systems come new problems. Banks have learnt that customers are facing difficulties with the new chip-based cards while withdrawing money.
Customers have complained that the card gets damaged when they mistakenly attempt to pull it out in the middle of the transaction. Many customers also forget to take out their card from the slot after the transaction is completed, resulting in loss/misuse of the card.
Here's what you need to do in order to avoid these problems:
1) Be aware that upgraded ATMs will lock the card inside for verifying your transaction and will release it only after the transaction is complete. You cannot pull out the card in the middle of the transaction. If you forcibly try to remove it while the transaction is still on, you will end up permanently damaging the chip in your card. You will have to apply for a new card then.
2) The ATMs will notify the customer to collect the card once the transaction is done. You can look out for the green LED indicator in the card slot which will blink once indicating that the card can be pulled out. You will also see a message on the ATM screen reminding you to collect your card from the slot.
3) If you have forgotten to remove the card from the slot and realise it later, you can immediately reach out to the bank and block your card. or log into your bank account online and block your card yourself.