Two-Stage Authentication For Online Banking Transactions

  • In wake of the increasing cases of fraud in online banking, the RBI in its report on ‘Enabling Public Key Infrastructure (PKI) in Payment System Applications’ has directed banks to educate customers about the risks associated with online banking transactions and create a 2 stage authentication as well as a PKI-based system for authentication and transaction verification.
  • This is to ensure a secure, strong and sound payment system and digital technologies will be used to secure electronic documents and transactions to check for their legality.
  • PKI-enabled payment systems such as RGTS, NEFT, CBLO, Forex Clearing, Government Securities Clearing and Cheque Truncation System (CTS) introduced by RBI contributed.
  • PKI enabled payment systems covered 25% to the total volume of payment transactions & over 93% to the total value in 2012-13, while non-PKI enabled payment systems shared 75 % in volume terms but only 6.3 % in terms of value.
  • Banks may implement in 3 phases PKI implementation for authentication and transaction verification.
  • EMV (card with chip and pin) have to be mandatorily issued to certain customers, while the others can opt for either EMV or Aadhar biometric authentication.
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Exams Perspective:

  1. Public Key Infrastructure (PKI)
  2. Europay, MasterCard and Visa (EMV) Cards
  3. RBI
  4. Online Banking
  5. Biometrics
  6. NEFT