To make online transactions easier, the Reserve Bank of India will soon come out with single authentication payment norms for low value e-commerce transactions without any compromise on security.
The criteria to decide on low value transaction will be decided by the norms expected to be released in a month.
“One area is that we are looking at small payments where we have two-factor authentication. Whether we can create a system where we can avoid the second factor authentication so that the small transactions can go… (For) arrangement between customer liability and provider liability, we can work out something. We are discussing with banks,” RBI Deputy Governor H. R. Khan said at Inclusive Finance India Global Summit here on Monday.
Currently, two-step authentication is generally prevalent in the country unlike developed nations. First step of authentication is feeding PIN, and the next step is punching in of secure code or One-Time PIN (OTP).
“Maybe, we will go for a small amount where we need not have second factor authentication. That amount could be (Rs) 1,000, 2,000 or 3,000,” he said.
“I am not able to tell your the amount at the moment but that is what we are working at so that small value, low ticket we can get out of the second-factor authentication without compromising on customer’s liability and provider’s liability,” he said.
Asked by when guidelines on small ticket transactions will be issued, he said: “I suppose within a month’s time.”
Asked about the debt switch, Mr. Khan said the RBI had some plan but did not elaborate on this.
“We have got some plans to do it (bond switch),” he said.
Under a debt switch programme, the government plans to buy short-dated debt, and, in turn, sell longer duration G-secs in an effort to spread out redemptions of debt to later years.
–PTI