BENGALURU: Demonetization—the move from government that shook entire nation, obliged everyone to go to banks and stand in the queues outside ATM for long hours. With people craving to get into banks and ATMS to withdraw and deposit cash, there are other set of people who are least bothered about ATMs and Banks and are more than happy to lead a cashless life. If you are one of those lazy lads, here is another sigh of relief that comes from RBI regarding OTPs during online transaction.

The RBI has removed two-factor authentication for time being for online payments below 2,000. This move has made life of those lazy people and other customers using online banking much easier.

The move was implemented to simplify things for cab aggregators like Uber and Ola and other online merchants to accept cards. Previously, customers had to wait for the text message to type in OTP, which would kill some time while making online transaction. RBI's insistence on a second factor authentication had prompted cab aggregators to tie up with digital wallets like Paytm. Customers now need not wait for a text message containing the OTP before concluding the transaction. 

However, in future, if they agree to join hands with merchant, they can carry out the transaction by entering a password authenticated by the card network. 

Customers leveraging this facility will have to register their card details and additional factor authentication by the issuing bank. Previously, RBI relaxed the second factor authentication requirement for transactions in shops using near field communication (NFC) or contactless cards.

According to Vijay Jasuja, MD & CEO, SBI Cards, asserted “There had been a representation from the industry to relax the two-factor authentication norms for low-value transactions”.

It is said that RBI has been receiving requests from certain segments of the industry for reviewing the requirement of additional factor authentication for low-value online card-not-present (CNP) transactions. 

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