RBI Eases Authentication Norms for RBI Contactless Debit And Credit Cards.

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    The Reserve Bank of India (RBI) has decided to relax a few instructions relating to the need for  Additional Factor of Authentication (AFA) requirements for small value card present transactions only using contact-less cards.

    In this regard, it is advised that, relaxation for AFA requirement is permitted for transactions for a maximum value of Rs 2,000 per transaction.

    RBI Eases Authentication Norms for Contactless Debit And Credit Cards.

    The limit of Rs 2000 per transaction will be the limit set across all categories of merchants in the country where such contactless payments will be accepted.

    Beyond this transaction limit, the card has to be processed as a contact payment and authentication with PIN (AFA) will be mandatory.

    The RBI also said that banks are free to facilitate their customers to set lower per-transaction limits.

    The responsibility for authorizing the contactless payment based on such card-based limits will lie with the card issuing banks.

    Suitable velocity checks on how many such small value transactions will be allowed in a day / week / month) may be put in place by banks as considered appropriate, added further.

    GoodReturns.in

    Read more about: rbi debit card credit card
    Story first published: Friday, May 15, 2015, 11:59 [IST]
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