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Informist, Friday, Feb. 7, 2025

MUMBAI - The Reserve Bank of India on Friday issued draft directions regarding the additional factor of authentication for cross-border card-not-present or online transactions for public comments.

Earlier in the day, Governor Sanjay Malhotra, while detailing the monetary policy outcome, had proposed to extend additional factor of authentication to online international digital payments made to offshore merchants. The announcement was made to provide an additional layer of security in cases where the overseas merchant is enabled to the additional factor of authentication. 

Under the draft directions, card issuers need to register their bank identification numbers with card networks for validation of additional factor of authentication, the central bank said. Further, the draft directions require a card issuer to validate additional factor of authentication for non-recurring cross-border online transactions, whenever a request for the same is raised by the overseas merchant or the overseas acquirer.

Under the draft norms, card issuers shall put in place a risk-based mechanism for handling all cross-border transactions. The draft directions will come into effect by May.  End

Reported by Pratiksha

Edited by Vandana Hingorani

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