RBI has given banks one more month to put in place an extra layer of security — one-time user password — for credit card transactions over phone. The banks would now be required to comply with the new guidelines by February 1, after which the customers would need the additional password for telephonic credit card payments.
As per RBI guideline, banks were to decline any telephonic banking transactions, including the automated IVR (Interactive Voice Response) services, if customers do not have the One-Time Password (OTP) for such services with effect from January 1, 2011.
However, some banks expressed their inability to comply with this directive within the stipulated time and asked for more time to put in place the systems required for it, a senior official at a leading private sector bank said.
