The Reserve Bank of India (RBI) has removed the so-called two-factor authentication for online card transactions involving sums up to Rs2,000, in a move aimed at simplifying and encouraging electronic payments.The move will likely help cab aggregators, online movie ticket sellers and even e-commerce marketplaces.
Currently, any online transaction involving a card requires users to first enter card details on the merchant’s payment gateway, wait for a one-time password (OTP) to be sent to their mobile phone, and then use this number to complete the purchase.
Experts say that customers are likely to welcome the move as well. “Service providers will have to be careful in ensuring that security in these services is maintained. Multiple fraudulent small value transactions can add up to a large amount, if card details are compromised,” said Bhavik Hathi, managing director, Alvarez & Marsal India, a consultancy.