Page 11 - Banking Finance May 2021

RBI CORNER

Reserve Bank

News

RBI orders MobiKwik to Debit & credit card auto- notification can be sent to the users via
email or SMS. To carry the transaction
probe alleged data leak payment: RBI extends for the first time, a nod from customer

RBI has recently ordered digital deadline for processing is compulsory. However, this extra step
payments firm MobiKwik to probe recurring transactions can be avoided for the subsequent
allegations that data of its 110 million transactions, RBI mentioned. The limit
In a relief to banks and wallets, RBI has
users was breached, and warned that for auto-debit from cards and wallets,
recently extended the timeline for
the company will face fines if lapses are is set at Rs. 5,000.
processing recurring online
found. MobiKwik has faced growing For transactions above the cut-off, an
transactions by 6 months. Now banks
criticism recently for denying a leak. additional OTP will be needed. The user
and financial institutions have time till
Many customers and digital rights will have an option to "opt-out of that
September 30, 2021 to implement the
activists say is linked to the company's particular transaction" at any point.
new framework.
database. Banks and wallets cannot levy any
RBI said, "To prevent any extra charges on customers for opting
RBI was "not happy" with the inconvenience to the customers, or withdrawing recurring payments.
company's initial response and has Reserve Bank has decided to extend The primary objective of the
asked it to act immediately. MobiKwik the timeline for the stakeholders to framework was to protect customers
has also faced backlash for threatening migrate to the framework by six from fraudulent transactions and
legal action against a security months, i.e., till 30 September, 2021,". enhance customer convenience, RBI
researcher who first flagged the
To make digital payments in India "safe clarified.
breach.
and secure", RBI introduced Additional
Several users said that they had found Factor of Authentication (AFA). The RBI sees leaving repo rate
information such as their credit card recurring transactions using debit unchanged in first review
details on a leaked online database cards, credit cards, Unified Payments
that allegedly belonged to MobiKwik, Interface (UPI) or other Prepaid of FY22
a claim the company has denied. Payment Instruments (PPIs) will require The Monetary Policy Committee is
According to the sources, the RBI has an additional factor authentication likely to leave the signal repo rate
given MobiKwik an ultimatum and (AFA) from April 1, 2021, RBI earlier unchanged in the first bi-monthly
ordered them to retain an external mentioned. Monetary Policy Review of 2021-22 as
auditor to conduct a forensic audit. Under the new norms, banks will have economic recovery is still tentative and
RBI could also impose fines if the to notify customers about recurring retail inflation.
breach is proven. The RBI did not payments at least 24 hours prior to the The six-member MPC has kept the
respond to a request for comment. actual debit to the card. The repo rate steady at 4% in the last four

BANKING FINANCE | MAY | 2021 | 11