To prevent frauds, international online transactions will soon need additional authentication factor
Reserve Bank of India (RBI) has announced the introduction of additional factors of authentication for international digital payments made to offshore merchants who are enabled to undertake such transactions.
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Sanjay Malhotra, governor, RBI, said that the central bank is committed to reduce the instances of fraud happening and hence now additional factor of authentication is being introduced for international transactions made to offshore merchants who are enabled to undertake such transactions.
Enabling Additional Factor of authentication in cross-border Card Not Present transactions
RBI said: «Introduction of Additional Factor of Authentication (AFA) for digital payments has enhanced the safety of transactions which, in turn, provided confidence to customers to adopt digital payments. This requirement, however, is mandatory for domestic transactions only. In order to provide a similar level of safety for online international transactions using cards issued in India, it is proposed to enable AFA for international card not present (online) transactions as well. This will provide an additional layer of security in cases where the overseas merchant is enabled for AFA. Draft circular will be issued shortly for feedback from stakeholders.»
Enhancing Trust in the Financial Sector through 'bank.in' and ‘fin.in’ domains
RBI said: «Increased instances of fraud in digital payments are a significant concern. To combat the same, the Reserve Bank of India (RBI) is introducing the 'bank.in'
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