Speaking on the sidelines of a banking technology conference, Reserve Bank executive director G Gopalakrishna said that banks will have to implement "second factor verification" at merchant establishments and ATMs shortly.
"Many small banks do not have a designated CTO and also do not have a clear framework on information sharing...Over a period of time we want to access all the information from the main server of the bank once the RBI's IT Vision is implemented. Those banks having no CTOs and a steering committee will have to have these positions implemented at the earliest," Gopalakrishna has been quoted as saying.
He added, "Against the current practice of seeking the password, banks will have to ensure that ATMs and points of sale (Poses) will have the second factor verification soon to avoid any room for fraud."
The second factor verification is a safety methodology to make sure that online transactions are safe by asking the customer for a three-digit CVC number in the case of a credit card and the ATM password in the case of a debit card. With the use of technology in banking operations, Gopalakrishna informed that banking frauds have become non-existent.