RBI strengthens online security for credits cards

18 August 2009 00:00 am , CTOF Team

RBI to enforce additional security layer for all online credit and debit transactions

 

In a recent announcement RBI has stated that all online credit and debit transactions will need to go through one more step before they can be completed successfully.
Apart from the details such as the card number, expiry date and the three digit CVV security code that needs to keyed in, it has been made mandatory for the card holder to provide further inputs that indicate a security code or some other data that will enable him or her to complete the transaction.
RBI has also made it compulsory for all transactions that exceed Rs 5,000 to be intimated to the card holder through an online alert system.
Banks that do not adhere to these rules will be penalised under the Payment and Settlement Systems Act 2007 states RBI in its directive issued on Feb 18, 2009.
Though such measures are already being practiced by several banks including mobile alerts for every transaction that takes place using the card - be it an ATM withdrawal or card payment, this being made mandatory will make it a uniform practice for all banks and check the rising incidence of fraudulent online transactions.
On the other hand virtual cards are being promoted by banks specifically to address such fraudulent online transactions.
These cards go one step even further in implementing online security. They are a one time use card.
The user can generate this card online via a simple registration process several times during any given day with pre-defined cash limits set for the card depending on that particular transaction requirements. The left over cash will be refunded back to the credit or debit card account. All you have to do is log on to your online banking account and register for the virtual card.
The bank will generate a brand new exclusive 16 digit number, a CVV2 number and an expiry date for that particular virtual card.
A lot more of these hacker plugs are needed, though there is no one easy solution in sight with the use of plastic money. Users also need to be alert when using an online service and ensure security instructions are strictly adhered to.

In a recent announcement RBI has stated that all online credit and debit transactions will need to go through one more step before they can be completed successfully.

Apart from the details such as the card number, expiry date and the three digit CVV security code that needs to keyed in, it has been made mandatory for the card holder to provide further inputs that indicate a security code or some other data that will enable him or her to complete the transaction.

RBI has also made it compulsory for all transactions that exceed Rs 5,000 to be intimated to the card holder through an online alert system.

Banks that do not adhere to these rules will be penalised under the Payment and Settlement Systems Act 2007 states RBI in its directive issued on Feb 18, 2009.

Though such measures are already being practiced by several banks including mobile alerts for every transaction that takes place using the card - be it an ATM withdrawal or card payment, this being made mandatory will make it a uniform practice for all banks and check the rising incidence of fraudulent online transactions.

On the other hand virtual cards are being promoted by banks specifically to address such fraudulent online transactions.

These cards go one step even further in implementing online security. They are a one time use card.

The user can generate this card online via a simple registration process several times during any given day with pre-defined cash limits set for the card depending on that particular transaction requirements. The left over cash will be refunded back to the credit or debit card account. All you have to do is log on to your online banking account and register for the virtual card.

The bank will generate a brand new exclusive 16 digit number, a CVV2 number and an expiry date for that particular virtual card.

A lot more of these hacker plugs are needed, though there is no one easy solution in sight with the use of plastic money. Users also need to be alert when using an online service and ensure security instructions are strictly adhered to.

 


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