Due
to rising online fraudulent activities, RBI has instructed banks to adopt a two
stage verification process to ensure secure transaction.
RBI’s
report 'Enabling Public Key
Infrastructure (PKI) in Payment System Applications' suggested banks to inform
their respective customers about the risks involved in online banking.
"Internet
banking applications of all banks should mandatorily create authentication
environment for password- based two-factor authentication as well as PKI-based
system for authentication and transaction verification in online banking
transaction," the report said.
Further,
the report states that bank must allow their customers to choose from numerous
authentication option to ensure security for their online transactions. Hence,
RBI introduced different types of online payment systems such as RTGS, CBLO,
NEFT, Government Securities Clearing, Cheque Truncation System (CTS) and Forex
Clearing.
In
terms of value, such systems contribute 93.7% to the total share of payment
transaction. However, in terms of volume, their share is limited to 25.1%.
"The objective of an effective payment system is to ensure a safe, secure, efficient, robust and sound payment system in the country. In order to secure electronic documents and transactions and to ensure legal compliance, digital technology is used," report stated.
"The
banks have been mandated to issue EMV (card with chip and pin) to certain
category of customers and for the other customers, banks have been given option
to either issue EMV cards or adopt Aadhaar biometric authentication as
additional factor of authentication," the report said.
Definitely
online banking is trending and would become the future way of transaction. Many
researchers suggest that it would grow exponentially in future. For example, a
report by Allied Market Research analyzed the online banking market and gave a
fair & square idea about it. Banking is definitely on it all time high and
would witness higher leaps in future.
