The Reserve Bank of India (RBI) has issued new guidelines on Tuesday with the aim of improving the payment system. The Reserve Bank said that operators associated with non-bank payment systems will have to take real-time fraud monitoring measures to identify and alert about suspicious transaction activities. According to the news of Bhasha, non-bank PSOs will have to follow the ‘master’ i.e. basic guideline issued on cyber robustness and digital payment security control.
This rule is made regarding mobile application
According to the news, non-bank payment system operators (PSOs) will also have to ensure that if the mobile application is not in use, it should close automatically after a certain period and customers will need to login again. The directive has come into effect from Tuesday. RBI has also prescribed a phased implementation with the aim of providing sufficient time to PSOs to prepare the necessary compliance structure.
The affected transactions will be rolled back
RBI said that the purpose of the instructions is to improve the payment system security of PSOs by providing a framework for complete information security preparedness with an emphasis on cyber robustness. Regarding mobile payments, RBI said that PSOs should ensure that authenticated sessions with encryption protocols are maintained during the interaction with the customer. The Reserve Bank said that in case of any interference, if the customer closes the application, the session will be terminated and the affected transactions will be resolved or refunded.
…then customers will need to login again
In addition, the PSO should ensure that the online session on the mobile application closes automatically after a certain period of inactivity and the customer is required to login again. The RBI said that the card network should provide a facility to implement transaction limits at the card, Bank Identification Number (BIN) as well as card issuer level.
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