RBI AFA
RBI has made full preparations to stop banking fraud. For this, a new framework has been drafted recently. This alternative authentication mechanism will provide an additional layer of security to users making online or digital payments. Considering the way online fraud incidents have increased in the last few years, this step of the Reserve Bank will prove to be a relief for crores of online payment users in the country.
What is AFA (Additional Factor of Authentication)?
The central bank has given top priority to the security of digital payments. For this, the new Authentication Factor Aggregation (AFA) or Additional Factor of Authentication will create a new security layer for online payments made by users. This security layer will improve the existing preventive method i.e. SMS based OTP (One Time Password).
The Reserve Bank said in its draft guidelines that the need for AFA was felt keeping in mind the security of people making digital payments. SMS-based OTP was first used as AFA for the digital payment ecosystem. Although the OTP-based security method is working well right now, but due to technological advancement, using an alternative authentication mechanism is the need of the hour.
How will AFA work?
The central bank in its guidelines stated that any credential input used by the customer for AFA will be used, which can be verified for payment instruction. RBI has classified it into three categories given below.
- The password, PIN or phrase set by the user for AFA will be included.
- Apart from this, hardware or software tokens can be used.
- Not only this, biometrics i.e. fingerprint can also be used to increase the level of security.
Reserve Bank can use PIN, Password, Biometric or Security Token in addition to OTP for a risk free digital payment ecosystem. In this way, online banking fraud can be curbed in the coming days.
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