RBI proposes 2FA to ensure security of transactions

The bank has mentioned that banks should introduce two-factor authentication (2FA) to make sure online transactions are secure.

The document points out different aspects of having a secure online payment system and explains the various financial risks, such as credit risk, liquidity risk, systemic risk, operational risk and legal risk, in detail. With a strong emphasis on PKI technology, which enables users to make a secure transaction over an unsecure network, RBI unveils that PKI systems contributed 93.7% share to the total number of payment transactions carried out in the year 2012-2013. Despite such a high amount, the cause of worry is that even though non-PKI enabled payment systems contributed 6.3% in value terms in the year 2012-13, they account for 75 % in volume terms.

The reports also reveals that banks should carry out in three phases PKI implementation for authentication and transaction verification.