RBI to issue norms for single-authentication online payments soon
The Reserve Bank will soon come out with single authentication payment norms for low value e-commerce transactions through debit or credit cards without compromising on security.business Updated: Feb 22, 2015 13:02 IST
The Reserve Bank will soon come out with single authentication payment norms for low value e-commerce transactions through debit or credit cards without compromising on security.
The norms will decide the amount qualifying for low value transaction.
"The process is under way... we will come out with guidelines (on single authentication payment) in the next few weeks," RBI deputy governor HR Khan said.
At present, a two-step authentication is prevalent in India unlike developed nations. The first step of authentication is feeding a secure number and the next step is punching in of another secure code or One Time PIN (OTP).
The RBI has taken feedback from banks and other stakeholders on this.
"I am not able to tell you 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," Khan had said earlier.
Meanwhile, the commerce and industry ministry last week turned down a proposal of the consumer affairs ministry to bring the e-commerce sector under the purview of nine different departments including RBI, saying it would create problems for investors.
According to the proposal of the consumer affairs ministry, the sector should be handled by nine departments and regulatory bodies, including the RBI, home ministry, the department of revenue, and the corporate affairs ministry.
Rejecting the proposal, the department of industrial policy and promotion (DIPP) also wants the consumer affairs ministry to take care of issues related to e-commerce "as nine different departments would create problems for investors".
At present, most consumer-related disputes and complaints about the e-commerce sector are dealt by the department of consumer affairs.
However, the consumer affairs department has suggested that e-commerce involved complex issues, including foreign investment and inter-state sale of goods through portals, and hence the different aspects should be regulated by all the departments concerned.