ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2023
  • Adani Saga
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » India News

RBI eases rules for online payments up to Rs 2000

In this model, the card issuing banks will offer the “payment authentication solutions” of the respective card networks to their customers on an optional basis."

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
RBI eases rules for online payments up to Rs 2000
RBI headquarters in Mumbai. Representational image. Pic: Reuters

In its bid to make online payments easier and less cumbersome, the Reserve Bank of India (RBI) on Tuesday said that additional factor of authentication (AFA) for payments up to Rs 2000 are being relaxed. 

RBI said, "The Reserve Bank has been receiving requests from certain segments of the industry for reviewing the requirement of AFA for low value online card not present (CNP) transactions. As most of the requests were for merchant specific relaxations on AFA requirements, they were not appropriate at the system level. An alternate solution, provided by authorised card networks is expected to meet the objective of customer convenience with sufficient security for low value transactions. In this model, the card issuing banks will offer the “payment authentication solutions” of the respective card networks to their customers on an optional basis."

What this simply means is that a customer can opt for a one-time registration process requiring entry of their credit or debit card details and an AFA with their respective bank. Thereafter, the registered customers will not be required to re-enter the card details for every transaction at merchant locations that offer this solution and thereby save time and effort. "In this model, the card details already registered would be the first factor while the credentials used to login to the solution (as confirmed by the card network providing the solution) would be the additional factor of authentication," RBI said. 

Beyond the transaction limit of ₹ 2000/-, the card not present transaction has to necessarily be processed as per the extant instructions with mandatory AFA

RBI said, "Even for transaction values below this limit, the customer may choose to make payment using other forms of AFA as hitherto."

However, with growing digital frauds and siphoning off money from people bank accounts online, this move to doing away with AFA may make digital bank accounts more vulnerable. There may be a possibility that a fraudster, once gotten hold of digital banking details of a customer, executes money transfers worth Rs 2000 multiple times within a short span of time. 

RBI, to counter such an event, said, "Suitable velocity checks (i.e., how many such small value transactions will be allowed in a day / week / month) may be put in place by banks/card networks as considered appropriate."

The bank further said that this easing of safety net shall be made available to a customer only after taking their consent. 

Moreover, the banks or authorised card networks offering such solutions will bear the full liability in the event of any security breach or compromise in the authorised card network, RBI said. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
RBIOnline PaymentsAFAAdditional Factor of Authentication2FA2 factor authenticationcard not presentCNPReserve Bank of IndiaEcnomyecommerce
Written By: ZeeBiz WebTeam
Updated: Tue, Dec 06, 2016
11:02 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Bank locker renewal rules extended by RBI till December 31 Bank locker renewal rules extended by RBI till December 31
RBI allows 6 entities to test fintech products to deal with financial frauds under sandbox scheme RBI allows 6 entities to test fintech products to deal with financial frauds under sandbox scheme
Equitas Small Finance Bank shares hit new 52-week high – here’s why Equitas Small Finance Bank shares hit new 52-week high – here’s why
SBI, ICICI Bank, HDFC Bank continue to remain systemically important banks: RBI SBI, ICICI Bank, HDFC Bank continue to remain systemically important banks: RBI
International regulation needed for crypto activities, says RBI International regulation needed for crypto activities, says RBI

LATEST NEWS

Budget 2023-24: 50 new airports, helipads and aerodromes to be opened

Should you buy, hold or sell Coal India shares after Q3 results, dividend announcement?

Budget 2023: What has become cheaper and what is costlier now?

Budget 2023: Mahila Samman Saving Certificate scheme announced; to offer 7.5% interest

Budget 2023: India has made significant progress in many Sustainable Development Goals, says FM Nimala Sitharaman

From RVNL to IRCON to IRCTC: Railway-related stocks in limelight ahead of Union Budget

ITC falls and then recovers after government hikes cigarette taxes — do investors need to panic?

Budget 2023: Startups incorporated till March 2024 to get income tax benefits

Budget Stocks 2023 on Zee Business with Anil Singhvi: Buy IRB Infra, L&T, MSTC, Apollo Tyres - check price target

Top Gainers & Losers: Prospects brighten for SBI shares ahead of Q3 earnings, 32% upside seen; M&M, Bajaj Finance poised for gains too, say brokerages

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. India Dot Com Private Limited. All Rights Reserved.
LIVE TV