Amid rising instances of debit and credit card frauds, an RBI panel has recommended that banks should put in place secure systems to check such cases within a year’s time.
“All acquirers and issuers may put in place adequate fraud risk management systems and processes [within] 12 months,” said the panel in its recommendations for an action plan to implement additional authentication for all card transactions.
It said that in case of unique identification (UID) based biometrics is adopted, then the ATMs and POS terminals should be enhanced to accept biometrics.
For the benefit of debit card holders, it suggested that all transactions through such cards should have a PIN (Personal Identification Number) as an additional factor of authentication at point of sale (POS).
It has also suggested evaluation of Unique Identification Authority of India (UIDAI) for securing payment through credit cards.
There are about 24 crore debit card users and 1.8 crore people have credit cards. As per the RBI, the number of POS terminals in the country is about 5.6 lakh and 70,000 ATMs.