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RBI has announced a draft on Framework on Alternative Authentication Mechanisms for Digital Payment Transactions.
As per the draft, “Factor of Authentication: Any credential input by the customer which is verified for the purpose of confirming the originator of a payment instruction.
The factors of authentication are broadly categorised as below:
Unless otherwise specified in this framework, all digital payment transactions will be verified through the use of an additional factor of authentication. When determining the proper AFA for a transaction, issuers such as banks, non banks can use a risk-based methodology that takes into account the transaction value, origination channel, customer and/or beneficiary risk profiles, among other factors. Issuers must have a mechanism in place to notify customers of any eligible digital payment transactions almost instantly, as per the draft.
These are exempted from customer authentication:
Small value contactless card payments:
Small value card present transactions for values upto Rs 5000/- per transaction in contactless mode at Point of Sale (PoS) terminals.
E-mandates for recurring (other than the first) transactions:
Transactions in respect of:
a) subscription to mutual funds;
b) payment of insurance premium and
c) credit card bill payments, for values upto Rs 1,00,000, and in respect of all other categories, for values upto Rs 15,000/-.
Utility through select Prepaid Instruments / NETC:
The following categories of instruments/systems:
Prepaid Instruments (PPIs) issued under PPI – Mass Transit Service and Gift PPIs.
As per the draft, “Factor of Authentication: Any credential input by the customer which is verified for the purpose of confirming the originator of a payment instruction.
The factors of authentication are broadly categorised as below:
- Something the user knows (such as password, passphrase, PIN)
- Something the user has (such as card hardware or software token)
- Something the user is (such as fingerprint or any other form of biometrics).”
Unless otherwise specified in this framework, all digital payment transactions will be verified through the use of an additional factor of authentication. When determining the proper AFA for a transaction, issuers such as banks, non banks can use a risk-based methodology that takes into account the transaction value, origination channel, customer and/or beneficiary risk profiles, among other factors. Issuers must have a mechanism in place to notify customers of any eligible digital payment transactions almost instantly, as per the draft.
These are exempted from customer authentication:
Small value contactless card payments:
Small value card present transactions for values upto Rs 5000/- per transaction in contactless mode at Point of Sale (PoS) terminals.
E-mandates for recurring (other than the first) transactions:
Transactions in respect of:
a) subscription to mutual funds;
b) payment of insurance premium and
c) credit card bill payments, for values upto Rs 1,00,000, and in respect of all other categories, for values upto Rs 15,000/-.
Utility through select Prepaid Instruments / NETC:
The following categories of instruments/systems:
Prepaid Instruments (PPIs) issued under PPI – Mass Transit Service and Gift PPIs.
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