The Reserve Bank of India Governor Shaktikanta Das on Thursday said the central bank is vigilant to enhance the security of Aadhaar Enabled Payment System (AePS) transactions.
It is proposed to streamline the onboarding process, including mandatory due diligence, for AePS touchpoint operators, to be followed by the banks, Governor Shaktikanta Das said.
Additional fraud risk management requirements will also be considered, he added.
Das further said detailed instructions in this regard will be followed soon.
The Aadhaar Enabled Payment System (AePS), operated by NPCI, enables customers to perform digital payment transactions in assisted mode.
Governor Das told in 2023, over 37 crore users undertook AePS transactions, which points to the important role played by AePS in financial inclusion.
He further said over the years, RBI has prioritised security of digital payments, in particular the requirement of Additional Factor of Authentication (AFA).
Though RBI has not prescribed any particular AFA, the payments ecosystem has largely adopted SMS-based One Time Password (OTP).
“With innovations in technology, alternative authentication mechanisms have emerged in recent years. To facilitate the use of such mechanisms for digital security, it is proposed to adopt a principle-based ‘Framework for authentication of digital payment transactions’,” Das told.
Notably, the six-member MPC also decided by 5 is to 1 majority to keep the policy rate unchanged at 6.5%, and maintain ‘withdrawal of accommodation’ stance.
While announcing the MPC decision, the governor said the Real GDP growth is projected at 7% for 2024-25. For next year, real GDP growth for Q1 2024-25 is projected at 7.2%, for Q2 at 6.8%, Q3 at 7% and Q4 at 6.9%, the risks are evenly balanced.
“Though global trade momentum remains weak, it is exhibiting signs of recovery and is likely to grow faster in 2024,” governor said.
