Page 8 - Banking Finance March 2021

RBI CORNER

Reserve Bank News
Reserve Bank News
Reserve Bank News
Reserve Bank News
Reserve Bank News

Reserve Bank issues users. These directions contain It further said that entities would
requirements for robust governance, incorporate secure, safe and
guidelines for digital implementation and monitoring of responsible usage guidelines and
payments certain minimum standards on training materials for end users within

RBI came out with a Master Direction common security controls for channels the digital payment applications.
for banks and card-issuing entities like internet and mobile banking, card "They shall also make it mandatory
laying down common minimum payments, etc. (i.e. not providing any option to
standards to ensure security of digital The robust protocol will help in circumvent/ avoid the material) for the
payments. checking frequent outages and consumer to go through secure usage
The Master Direction lays down disruption while provide secure guidelines (even in the consumer's
guidelines for internet banking, mobile environment of digital transaction. preferred language) while obtaining
payments, card payments, customer The RBI in December temporarily and recording confirmation during the
protection and grievance redressal on-boarding procedure in the first
barred largest private sector lender
mechanism. instance and first use after each
HDFC Bank from selling new credit
"In view of the proliferation of cyber- cards or launching new digital banking update of the digital payment
attacks and their potential initiatives, taking a serious view of application or after major updates to
consequences, regulated entities service outages at the systemically secure and safe usage guidelines," it
should implement, except where important bank over the last two said.
explicitly permitted/ relaxed, multi- years. The digital banking app of the REs would adhere to extant
factor authentication for payments country's largest lender SBI was also instructions, updated from time to
through electronic modes and fund facing service outages. time, to put in place systems for online
transfers, including cash withdrawals The Master Direction provides dispute resolution for resolving
from ATMs/ micro-ATMs/ business necessary guidelines for the Regulated disputes and grievances of customers
correspondents, through digital Entities to set up a robust governance pertaining to digital payments, it said.
payment applications," it said.
structure and implement common On public awareness, it said, financial
The provisions of these directions minimum standards of security controls institutions should inform about types
would apply to the Regulated Entities for digital payment products and of threats and attacks used against the
(REs)-- Scheduled Commercial Banks, services and the guidelines are consumers while using digital payment
Small Finance Banks, Payments Banks; technology and platform agnostic and products and precautionary measures
and Credit card issuing NBFCs. shall create an enhanced and enabling to safeguard against the same.
Such a move is expected to improve environment for customers to use "Customers shall be cautioned against
the security of digital payment digital payment products in a more commonly known threats in recent
channels and also convenience for safe and secure manner, it said. times like phishing, vishing, reverse-

8 | 2021 | MARCH | BANKING FINANCE