In a bid to make online transactions easier, RBI might soon introduce a single authentication payment for low value ecommerce transactions without making any compromises on the security.
“One area is that we are looking at small payments where we have two factor authentication. Whether we can create a system where we can avoid the second factor authentication so that the small transactions can go… (For) arrangement between customer liability and provider liability, we can work out something. We are discussing with banks,” RBI Deputy Governor H R Khan said
At the moment, two step procedure is valid in the country wherein first step is the entering of PIN which is followed by punching-in of a secure One Time Password (or OTP). RBI might go for for a small amount where there will be no need to have second factor authentication. That amount could be INR 1000, 2000 or 3000.
“I am not able to tell your 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,” he said.
Reserve Bank of India (RBI) is expected to come up with the guidelines for single-authentication payment norms for small ticket ecommerce transactions, in as early as a months time.
This will come as great news for SaaS and marketplace based Indian startups that have been struggling to take automated payments or have been moving out of India to get a recurring payment gateway.
RBI had made two-step authentication process for credit card transactions mandatory earlier this year in August, following the rules recently Uber tied up with Paytm for the wallet.