01/08/2024
UPDATES of the day 01.08.2024
LEGAL MAXIM
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RBI
RBI draft framework mandates additional authentication for all digital payments
To enhance the security of digital payments, the Reserve Bank has issued a draft framework for alternative authentication mechanism for all digital payments, mandating an additional factor of authentication (AFA) for all digital payment transactions, except small value, contactless card payments for up to Rs 5,000 at point of sale terminals, e-mandates for recurring transactions, and small value digital payments through offline mode, among others. Additionally, the RBI draft says all digital payment transactions, other than card present transactions, have to ensure that one of the factors of authentication is dynamically created -- that is to say the authentication factor is generated after initiation of payment and is specific to the transaction and cannot be reused. Card present transactions are carried out physically.
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To enhance the security of digital payments, the Reserve Bank has issued a draft framework for alternative authentication mechanism for all digital payments, ma