RBI asks banks to add ex­tra se­cu­rity layer for phone bank­ing

The Pak Banker - - Front Page -

NEW DELHI: Banks will ask for an ad­di­tional pass­word from their credit card cus­tomers from the new year for any trans­ac­tions con­ducted over phone, sub­se­quent to a Re­serve Bank di­rec­tion for mak­ing phone bank­ing more se­cure.

As per the RBI guide­line, all the banks will manda­to­rily de­cline any tele­phonic bank­ing trans­ac­tions, in­clud­ing the au­to­mated IVR (In­ter­ac­tive Voice Re­sponse) ser­vices, where the cus­tomers do not have a One-Time Pass­word (OTP) for such ser­vices with ef­fect from Jan­uary 1, 2011.

How­ever, the OTP will be valid for a sin­gle use and would re­main in ef­fect for a pe­riod of 2 hours. The cus­tomers would need to gen­er­ate a sep­a­rate OTP for each IVR trans­ac­tion.

The new step has been taken as a safe­guard against credit card frauds. There has been an uptick in credit card frauds where lost or stolen cards can be used by any­one.

For trans­ac­tions where cards are needed to be pre­sented phys­i­cally, the RBI has al­ready made it manda­tory for an iden­tity ver­i­fi­ca­tion and the sig­na­ture also needs to be matched with that on the card. But phone and in­ter­net bank­ing have been mat­ter of grey ar­eas in terms of their mis­use.

The added se­cu­rity layer for phone bank­ing fol­lows a sim­i­lar step taken by the banks for in­ter­net bank­ing trans­ac­tions. Ear­lier this year, RBI had made it manda­tory for banks to pro­vide their cus­tomers an ad­di­tional se­cu­rity layer for all the credit card trans­ac­tions con­ducted over in­ter­net.

Banks like Citibank and HDFC Bank have al­ready com­mu­ni­cated to their cus­tomers to get the OTP for their phone bank­ing trans­ac­tions, while oth­ers are in the process of do­ing so. Ac­cord­ing to bank­ing sec­tor ex­perts, those cus­tomers who do not get an OTP be­fore Jan­uary 1, will be prompted to get one when­ever they ini­ti­ate a phone bank­ing trans­ac­tion.

"Start­ing 1st Jan­uary, 2011 these (IVR) trans­ac­tions need to be au­then­ti­cated with an ad­di­tional pass­word. This is manda­tory as per the RBI guide­line," HDFC Bank said in a cir­cu­lar to its credit card cus­tomers. -PB News

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.