New Delhi: The Reserve Bank of India in a notification said it is considering Additional Factor of Authentication (AFA) for digital payments which may go beyond OTP-based verification to include fingerprints, hardware, or PIN. In its 7-page draft Framework on Alternative Authentication Mechanisms for Digital Payment Transactions, the RBI said it shall exclude:
Contactless point-of-sale payments up to Rs 5,000
Recurring e-mandates worth Rs 15,000 for multiple categories and RS 1 lakh for credit card bill payments
Prepaid payment instruments used for transit services and National Electronic Toll Collection
The central bank has invited comments and suggestions on the draft by email or by post. The same may be addressed to the Chief General Manager-in-Charge in RBI Department of Payment and Settlement Systems.
Aadhaar Enabled Payment System due diligence
The RBI also notified rules for the onboarding of touchpoint operators for AePS. This was notified citing instances of identity theft and compromising of customer credentials, according to official notification. Comments and feedback on the same may be notified to the RBI’s Department of payment and settlement systems.
” The acquiring bank shall carry out due diligence of all AePS touchpoint operators onboarded by it,” said RBI. It will be the acquiring bank’s responsibility to update KYC for AePS operators. NPCI will be responsible for ensuring that the operator has only been onboarded by the acquiring bank, according to the notification.
The touchpoint operator’s risk profile will also have to be factored in during onboarding, according to the RBI proposal.
RBI payment authentication proposal: The central bank has proposed to introduce RIN, fingerprint and hardware based payments authentication to prevent cyberfraud. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
