Topics In Demand
Notification
New

No notification found.

Call for Inputs: RBI's Draft Framework on Alternative Authentication Mechanisms for Digital Payment Transactions
Call for Inputs: RBI's Draft Framework on Alternative Authentication Mechanisms for Digital Payment Transactions

August 2, 2024

118

0

On July 31st 2024, The Reserve Bank of India (RBI) released a draft  “Framework on Alternative Authentication Mechanisms for Digital Payment Transactions”. Currently, there is a requirement for an Additional factor of authentication (AFA) for all transactions undertaken using cards, prepaid instruments and mobile banking channels as per RBI guidelines. While no specific factor has been mandated for authentication, the digital payments ecosystem has primarily adopted SMS-based OTP as AFA. 

The proposed draft “Framework on Alternative Authentication Mechanisms for Digital Payment Transactions” provides the broad principles which will have to be complied with by all the participants in the payment chain while using various forms of authentication, particularly Payment System Providers and Payment System Participants (banks and non-banks). All Payment System Providers and Payment System Participants (banks and non-banks) will have to ensure compliance with this framework within three months from the date of issue of these directions by the RBI. 

The aim of the proposed draft framework is to enable the payments ecosystem to adopt alternative authentication mechanisms. This will widen the choice of authentication factors available to Payment System Operators and users. A copy of the proposed draft framework is attached below. 
 

In this regard, we request you to send us your comments, inputs and feedback before September 4th, 2024 to ananya@nasscom.in with a copy to policy@nasscom.in on the proposed draft framework, particularly highlighting any potential challenges in implementation, opportunities for further improvement, specific concerns related to the IT sector and/ or any other relevant observations. 


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


Download Attachment

RBI Draft “Framework on Alternative Authentication Mechanisms for Digital Payment Transactions [31 July 2024].pdf

© Copyright nasscom. All Rights Reserved.