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RBI Relaxes 2 Factor Authentication Norms for Debit Card Transactions Below Rs. 2,000

RBI Relaxes 2 Step Authentication: The Reserve Bank of India, to make small online transactions a faster process, relaxed norms for the AFA. This AFA process is Additional Factor of Authentication is relaxed for payments up to Rs.2000. if a person wants to make transactions without having a card present, they can now do so for an amount of up to Rs. 2000. The RBI has relaxed the norms for online (Card Not Present) CNP Transactions for up to a number of Rs. 2000.

The RBI also said that only the authorised card networks can provide these payment authentication solutions along with the participation of issuing the card and acquiring banks. RBI said, “The relaxation for AFA under such solutions shall be applicable for card not present transactions for a maximum value of Rs. 2,000 per transaction across all merchant categories. Banks and card networks are free to facilitate their customers to set lower per transaction limits”.

RBI Relaxes 2 Step Auth for CNP Transactions till Rs. 2000: 

On an optional basis, the card issuing banks will offer this payment authentication solution of the card networks to their customers. Those who would like to take this facility have to register which is a one-time registration process. This requires the card details entry and AFA by the bank who issues. RBI says, “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”

The first factor of authentication is the registration of the card details itself. So when the user uses his credentials to log into the payments solution, that is considered as the additional authentication factor. The RBI added, “suitable velocity checks (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 card networks offering these solutions and the banks will take on the liability fully in case of a security compromise for authorised card networks for customer protection and awareness, said the RBI.

Uber India welcomed the move saying, “This waiver is a big leap in the right direction to bring ease and convenience to the use of cards over cash and will strengthen the foundation for India to become a leading digital economy.”

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