Advertisement

HindustanTimes Sat,23 Aug 2014

Coming: 2-step verification for web payments

HT Correspondent, Hindustan Times  New Delhi, April 24, 2014
First Published: 00:15 IST(24/4/2014) | Last Updated: 00:21 IST(24/4/2014)

Expressing concern over the rise in cyber crimes, the Reserve Bank of India (RBI) has asked banks to introduce a two-way authentication process to ensure customer safety. The central bank has also asked banks to inform customers about the types of risks involved in these kind of transactions.

“Internet banking applications of all banks should mandatorily create authentication environment for password-based two-factor authentication as well as PKI-based system for authentication and transaction verification in online banking transaction,” according to a report by RBI  titled Enabling Public Key Infrastructure (PKI) in Payment System Applications.

Public Key Infrastructure is a cryptography technique that enables users to securely communicate on an insecure public network, and reliably verify the identity of a user via digital signatures. This verification may be done in the form of a second password/phrase/image/question that a user has to answer to complete a transaction. Another form of PKI may be asking the user to feed in a one-time verification code that the bank sends to her via SMS or email during a transaction.

PKI-enabled electronic payments systems introduced by the RBI include Real-Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT), Forex Clearing, Government Securities Clearing, and Cheque Truncation System.

“We have taken several steps to ensure and uphold customer’s safety and security but a lot more has to be done,” a senior executive at a private sector bank told HT.

Complaints linked to unauthorised fund transfers, fraudulent withdrawals from ATMs, fake e-mails seeking personal information have registered a significant increase in recent times, an official source said.

These systems contributed 25.1% of the total payment transactions in volume terms in 2012-13 while non-PKI enabled payment systems contributed 75% in volume terms.


Advertisement
more from Business

Sebi clamps down on PACL’s Rs 50K croremoney-pooling scheme

In its biggest ever crackdown, capital market regulator Sebi on Friday ordered the closure of a Rs 50,000-crore collective investment scheme run by Pearls Agrotech Corporation Ltd and directed the company to refund investors’ money within three months.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved