RBI introduces additional authentication feature for international transactions: Report

Also Read: RBI MPC cuts repo rate. What does it mean for your home, car loan EMIs?

This will bring international digital transactions made using Indian-issued cards under the same security standards that have been applied to domestic transactions, according to a Business Standard report.

HT cannot independently verify this information.

As of now, an extra layer of verification like through a One-Time Password (OTP) or biometric authentication exists for domestic transactions which reduces fraud when making online payments.

However, this didn’t apply to international transactions till now. Thus, the RBI’s newly proposed move plugs this gap.

Also Read: iPhone SE 4 launch: Apple’s entry-level model up for an overhaul in coming days

Customers can also make international purchases more confidently online since their transactions are safeguarded.

This comes when online shopping and digital payments have seen a massive surge in India, with shoppers also increasingly buying from international retailers.

This increases the risk of fraud as well. As a result, the RBI has decided to extend AFA to cross-border Card Not Present (CNP) transactions, where a physical card is not used, and the transaction takes place over the internet, according to the report.

Also Read: RBI MPC cuts repo rate by 25 basis points to 6.25% to boost economy: Governor Sanjay Malhotra

When Indian cardholders make purchases using their cards from international sellers online, they have to verify the transaction using an OTP sent to their registered mobile number or through biometric authentication, which ensures that the person making the purchase is indeed the cardholder.