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: due date for vat payment :: list of goods taxed at 4% :: empanelment :: VAT RATES :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: form 3cd :: ACCOUNTING STANDARD
 
 
« Latest Circulars »
 Decrease in Foreign Investment limit/ceiling under the PIS in Indian Companies from 49% to 47% - M/s Ujjivan Financial Services Limited
 RBI launches the May 2017 Round of Inflation Expectations Survey of Households
  RBI announces auction of a 15-days Government of India Cash Management Bill
 Auction of Government of India Dated Securities April 24, 2017
 RBI- Compliance with Ghosh Committee Recommendations
 RBI announces auction of a 15-days Government of India Cash Management Bill
  Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 - Amended
 Minutes of the Monetary Policy Committee Meeting April 5-6, 2017
 Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 - Amended
 RBI-Professor Willem H. Buiter, Global Chief Economist, Citigroup, delivers the Sixteenth C.D. Deshmukh Memorial Lecture titled ‘The Good and the Bad Fiscal Theory of the Price Level’
 RBI launches Quarterly Order Books, Inventories and Capacity Utilisation Survey: January – March 2017 (Round 37)

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