RBI issues master direction to ensure security of digital payments
The Reserve Bank recently came out with a Master Direction for banks and card-issuing entities laying down common minimum standards to ensure security of digital payments. The Master Direction lays down guidelines for internet banking, mobile payments, card payments, customer protection, and grievance redressal mechanism.
"In view of the proliferation of cyber-attacks and their potential consequences, regulated entities should implement, except where explicitly permitted/ relaxed, multi-factor authentication for payments through electronic modes and fund transfers, including cash withdrawals from ATMs/ micro-ATMs/ business correspondents, through digital payment applications," RBI said.
The RBI in December temporarily barred largest private sector lender HDFC Bank from selling new credit cards or launching new digital banking initiatives, taking a serious view of service outages at the systemically important bank over the last two years. The digital banking app of the country's largest lender SBI was also facing service outages.