RBI 'Guidelines' to make Online transaction safer
The Reserve Bank of India (RBI) has issued a set of rules for payment aggregators and payment gateways to make digital payments safer for users. The Central Bank issued these rules through a notification, 'Guidelines on regulation of payment aggregators and payment gateways', on March 17, 2020.
The guidelines aim to minimise the risk of digital payment frauds and to keep customers' financial data safe.
The guidelines state that payment aggregators, such as Razorpay, CC Avenue etc., will now have to stop giving the option of using ATM PIN to users to validate/complete online transactions.
This means that for payments over Rs 2000 users will be able to use only OTP for verification. This way a person's ATM PIN will not be available online to the aggregator or payment gateway (or even a hacker) and therefore be safer.
Further, RBI has asked such aggregators to make sure that all refunds are credited back to the original source of payment, unless specifically agreed by the customer to credit to an alternate source.
Currently, many e-commerce companies either compulsorily or by default credit refunds into e-wallets of customers. Consequently, the payer is unable to get the money back into his bank account.
"All the digital payments above Rs 2,000 will have to be mandatorily verified via one-time password (OTP). However, according to RBI guidelines, verification of payments below Rs 2,000 via OTP is optional. The decision is taken to ensure that your ATM PIN is not available to anyone and your card is protected," says Kunal Varma, CBO and co-founder, Money Tap.
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