The Reserve Bank of India has eased the online payments system for transactions below Rs 2000 as it has recently removed the two-factor authentication system in the backdrop of the demonetisation policy. Presently, the online transactions require the filling up of bank details first and then an OTP (One Time Password) is generated that is sent to the customer’s mobile number without which the transaction cannot be fulfilled.
RBI terminates two-factor authentication process for online card payments
“We would have to wait and see how the registration process will come up, but it should be largely online.” – Sangram Singh, head of card and payments business, Axis Bank
From now on, this tedious process will be done away with, however, this is an optional service for which the merchants will have to inform their customers first who can then opt out of it as well.
This move is sought to ease the transaction procedure for the individuals using the digital platform for making payments, especially when the economy is going through as cash crunch. Also, this would encourage others to shift to the digital payments method.
“This waiver is a big leap in the right direction to bring ease and convenience to the use of cards over cash and will strengthen the foundation for a leading digital economy”, said Amit Jain, President Uber India.
SBI Cards Pvt. Ltd. Chief Executive Officer, Vijay Jasjua said, “As of now, customers can make payments using mobile wallets without a two-factor authentication. If you provide a facility to one company then it must be provided to everyone.”