Ensuring security of payment systems a big challenge: RBI

Posted By: Pti
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Mumbai, Jan 19 (PTI) Reserve Bank Deputy Governor K CChakrabarty today said ensuring security of payment systemsand protecting customers'' funds is the biggest challengebefore central banks and payments systems operators.

Banks should spread awareness to increase usage of newerpayment systems, Chakrabarty said, adding, "this (safety andsecurity) is a big challenge to be faced to avoid erosion ofcustomer confidence in the new age payment systems."

Delivering the inaugural address at Banknet''s 7th AnnualConference on Payment Systems here, Chakrabarty said the RBIhad mandated the additional factor of authentication for allcard-not-present transactions -- perhaps the first attempt byany regulator -- apprehending security being compromised.

"The RBI is currently in discussion with "banks and thecard companies to introduce an authentication system fortransactions at POS (points of sale)," Chakrabarty said.

Apart from that, in case of ATM cards, it is also mullinga move over to the more secure "Chip and Pin" cards from thecurrent pin-only system to check instances of cloning,Chakrabarty said.

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