The Reserve Bank of India on 6 December 2016 issued a notification stating that the requirement of an “additional factor of authentication” (AFA) for card not present (CNP) transactions up to ₹2,000 (US$30) could be relaxed by banks and authorized card networks, at the option of the customer. Customers opting for this facility would need to go through a one-time registration process with the issuing bank. Further, lower transaction limits may be set by the customer in opting out of the AFA requirement.
Earlier, the RBI had directed banks to put in place an AFA based on information that is not visible on the credit/debit cards used in CNP transactions. This “second factor” authentication is based on information that is known or available to the card holder but is not printed on the card.
You must be a
subscribersubscribersubscribersubscriber
to read this content, please
subscribesubscribesubscribesubscribe
today.
For group subscribers, please click here to access.
Interested in group subscription? Please contact us.
你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章，欢迎成为我们的订阅会员成为我们的订阅会员。
The business law digest is compiled by Nishith Desai Associates (NDA). NDA is a research-based international law firm with offices in Mumbai, New Delhi, Bengaluru, Singapore, Silicon Valley and Munich. It specializes in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner.
