Use Aadhaar authentication for card-based transactions: RBI
27 Nov 2013 11:25 PM GMT
‘In respect of cards, not specifically mandated by the RBI to adopt EMV norms, banks may take a decision whether they should adopt Aadhaar as additional factor of authentication or move to EMV chip and pin technology for securing the card present payment infrastructure,’ RBI said in a notification.
However, it said all new card present infrastructure has to be enabled with both EMV chip and pin technology and Aadhaar acceptance.
Biometric (finger print/retina scan) captured by UIDAI can be used as authentication to protect against both domestic counterfeit and lost and stolen card fraud as the cardholder has to be physically present at the POS terminal/ATM to authenticate the transaction.
If the card is counterfeited, the fraudster will not be able to use the card as biometric of the customer would be required.
For securing card and electronic payment transactions, RBI had set up a working group that had recommended evaluation of UIDAI's Aadhaar as an effective alternative for additional factor of authentication for domestic transactions.
RBI said the recommendations of the Working Group have been examined and these have been advised after taking into consideration the developments that have taken place in the card payment ecosystem as well as the scalability and effectiveness of Aadhaar over a period of time.
Card present transactions at POS or at ATMs constitute the major proportion of card based transactions in the country.
Currently, transactions using cards at POS do not require additional authentication in majority of the cards. However, data stored in magnetic stripe is vulnerable to skimming. Increasing confidence of the customer for using POS channel would require securing of these transactions through implementation of authentication in the short run and prevent counterfeiting of cards by migrating to chip and PIN in the long run.
EMV chip card protects against counterfeit (skimming) card fraud. EMV chip card and PIN protects against both counterfeit (skimming) and lost & stolen card fraud.
Nsel effect: Commexes’ November first fortnight turnover dips 65%
NEW DELHI: Turnover of the commodity exchanges fell by 65 per cent to Rs 2.56 lakh crore in the first fortnight of November due to sharp fall in trading volumes in most commodities.
The business at these bourses stood at Rs 7.24 lakh crore in the same period last year, the commodity markets regulator Forward Markets Commission (FMC) said in its latest report.
Analysts pointed that investors are reluctant to invest in commodity futures trading platform mainly due to payment crisis at National Spot Exchange Ltd (NSEL), promoted by Financial Technologies India Ltd (FTIL).
According to FMC data, trading in bullion (gold, silver) witness maximum fall of 72 per cent in the first fortnight of November to Rs 98,039 crore from Rs 3.55 lakh crore in the same period last year.
However, it said all new card present infrastructure has to be enabled with both EMV chip and pin technology and Aadhaar acceptance.
Biometric (finger print/retina scan) captured by UIDAI can be used as authentication to protect against both domestic counterfeit and lost and stolen card fraud as the cardholder has to be physically present at the POS terminal/ATM to authenticate the transaction.
If the card is counterfeited, the fraudster will not be able to use the card as biometric of the customer would be required.
For securing card and electronic payment transactions, RBI had set up a working group that had recommended evaluation of UIDAI's Aadhaar as an effective alternative for additional factor of authentication for domestic transactions.
RBI said the recommendations of the Working Group have been examined and these have been advised after taking into consideration the developments that have taken place in the card payment ecosystem as well as the scalability and effectiveness of Aadhaar over a period of time.
Card present transactions at POS or at ATMs constitute the major proportion of card based transactions in the country.
Currently, transactions using cards at POS do not require additional authentication in majority of the cards. However, data stored in magnetic stripe is vulnerable to skimming. Increasing confidence of the customer for using POS channel would require securing of these transactions through implementation of authentication in the short run and prevent counterfeiting of cards by migrating to chip and PIN in the long run.
EMV chip card protects against counterfeit (skimming) card fraud. EMV chip card and PIN protects against both counterfeit (skimming) and lost & stolen card fraud.
Nsel effect: Commexes’ November first fortnight turnover dips 65%
NEW DELHI: Turnover of the commodity exchanges fell by 65 per cent to Rs 2.56 lakh crore in the first fortnight of November due to sharp fall in trading volumes in most commodities.
The business at these bourses stood at Rs 7.24 lakh crore in the same period last year, the commodity markets regulator Forward Markets Commission (FMC) said in its latest report.
Analysts pointed that investors are reluctant to invest in commodity futures trading platform mainly due to payment crisis at National Spot Exchange Ltd (NSEL), promoted by Financial Technologies India Ltd (FTIL).
According to FMC data, trading in bullion (gold, silver) witness maximum fall of 72 per cent in the first fortnight of November to Rs 98,039 crore from Rs 3.55 lakh crore in the same period last year.
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