RBI proposes 2FA to ensure security of transactions

Thursday 24 April 2014 08:58 CET | News

Financial services provider Reserve Bank of India (RBI) has rolled out the final report of the Technical Committee on Enabling Public Key Infrastructure (PKI) in Payment System Applications.

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.

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Keywords: Reserve Bank of India, online payments, online transactions, online fraud, two-factor authentication
Categories: Fraud & Financial Crime
Countries: World
This article is part of category

Fraud & Financial Crime

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