Reserve Bank of India, in a move to bring some check on the rising cyber fraud has insisted that banks switch over to chip based ATM cards and also upgrade their ATM machines.

The switch from the conventional cards bearing magnetic strips to the chip based ones in expected to bring some check on the rising fraud amount.

The working group set by the apex bank on information security, electronic banking and technology risk management has recommended that special cells on banking frauds should be set up in the police departments of all states to specially deal with such crimes.

"It is recommended that RBI may consider moving over to chip-based cards along with requiring upgradation of necessary infrastructure like ATMs/ POS terminals in this regard in a phased manner," said the report of the working group headed by RBI Executive Director G Gopalakrishna.

The group also recommended changes in the present IT system existent in the Indian banking industry. "The Reserve Bank will begin implementing the recommendations of the Working Group shortly," the central bank said in a statement.

"The matter of having a separate cell working on bank frauds in each state police department, authorised to register complaints from banks and get the investigations done on the same, needs to be taken up with respective police departments," said the report.