Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: form 3cd :: ACCOUNTING STANDARD :: VAT RATES :: Central Excise rule to resale the machines to a new company :: TDS :: due date for vat payment :: VAT Audit :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: cpt :: empanelment :: articles on VAT and GST in India
 
 
« Latest Circulars »
 Regulatory requirements for issue of Pre-paid Payment Instruments by Co-operative Banks
 Applications invited for the Post of Deputy Governor, Reserve Bank of India
 Auction of Government of India Dated Securities May 22, 2017
  Direct Recruitment of ‘Chief Financial Officer’ in the rank of Executive Director in Reserve Bank of India
 A Call for Enterprise in Economic Data Generation and Information Analytics - Dr. Viral V Acharya, Deputy Governor - May 19, 2017 - Presentation at the 9th Indian Chamber of Commerce Banking Summit, Kolkata
 Reserve Bank of India Outlines the action plan to implement the Banking Regulation (Amendment) Ordinance, 2017
 RBI to conduct 7 day, 14 day and 28 day Variable Rate Reverse Repo Auctions under LAF on May 18, 2017
 RBI to conduct 7 day, 14 day and 28 day Variable rate Reverse Repo auctions under LAF on May 17, 2017
 RBI-Direct Recruitment of ‘Chief Financial Officer’ in the rank of Executive Director in Reserve Bank of India
 Auction of Government of India Dated Securities May 15, 2017
 Direct Recruitment of ‘Chief Financial Officer’ in the rank of Executive Director in Reserve Bank of India

Reserve Bank relaxes mandate of Additional Factor of Authentication (AFA) for small value card present transactions using contactless technology
May, 16th 2015

The Reserve Bank has today released the final circular on the relaxation in requirement of additional factor of authentication (AFA) for small value card present transactions for values up to ₹ 2,000/- per transaction across all merchant categories. This is in line with the Reserve Bank’s approach to enhance customer convenience while ensuring security in card based transactions.

Banks have been advised to put in place suitable velocity checks (i.e., how many such small value transactions will be allowed in a day / week / month) as considered appropriate.

Banks have also been advised to create awareness among customers about the use of contactless cards, its acceptability, the risks and liability, if any devolving on the customers, at the time of issuance of such cards.

Customers may look for the “contactless” logo on the card as well as at the merchant location so that they can distinguish such cards from other cards available with them and also identify the locations where contactless payments are accepted.

As these cards will continue to be chip cards, customers may use them, irrespective of value, as a regular chip card and authenticate the transaction with a PIN as hitherto. If the customer, however, chooses to use the card for contactless payments, then PIN authentication may not be necessary for transactions up to ₹ 2,000/-.

To ensure inter-operability and facilitate acceptance of such cards across all existing card acceptance infrastructure that are already Europay, MasterCard and Visa (EMV) compliant based on the existing instructions, this relaxation has been made applicable to only card present transactions using contactless cards (NFC-based) adhering to EMV standards. This will also ensure the usability of such contactless cards as regular chip card with PIN authentication, if the customer so desires.

Bank will examine the possibility of other types of contactless payment solutions using other form factors like mobile and issue instructions, if required.

It may be recalled that the Bank had placed in its website the draft circular on “Relaxation in requirement of Additional Factor of Authentication for small value card present transactions” on March 13, 2015 for public comments till April 04, 2015. This relaxation was considered taking into account the requests received from various segments indicating the need to foster innovative payment products as also enhance the convenience factor in certain types of card uses.

Ajit Prasad
Assistant General Manager

Press Release : 2014-2015/2407

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Article Management Solutions System Article Management Software S

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions