RBI Mulls Eliminating Additional Authentication for Some CNP Transactions
Jan. 6, 2011
The Reserve Bank of India (RBI) may consider doing away with the mandatory additional authentication for CNP transactions in the case of mail and telephone orders. The additional authentication for all CNP transactions was the result of an April 23 RBI directive, but the central bank said that during its review of the directive’s implementation, financial institutions “have been requesting to permit them to test the new system in a live scenario by providing a parallel run for a reasonable period, so as to ensure that customers are not put to inconvenience.” The RBI said it will permit the parallel run for IVR transaction until Jan. 31 (the directive took effect on Jan. 1). During this period, IVR transactions will not be declined merely on account of non-authentication of additional factors. It will also exempt mail and telephone orders from the directive until Feb. 28, when the central bank will make a final decision on their inclusion in the additional authentication requirements.