Finally, after much anticipating, Reserve Bank of India, or RBI came up with the final mode of paying issues, with a completely new set of guidelines. This is likely to end all ambiguity, which surrounds the field of contact less payment solutions. As reported earlier, there is not going to be an additional verification factor, which can land up to any amount till 2000 bucks. Therefore, any kind of amount up to 2000 bucks can be made, without even taking help of pin. This is likely to become a revolutionary method, for payment and transactional services, which will change the way people think, off late.
More information available
As per the latest PR from RBI segment, it announces the new circular or law for the Near Field Communication payment services. Here, it was clearly mentioned that even if the customer wants to take help of card for contactless method, they are free from dealing with PIN authentication, and can make transactions, lasting up to rupees 2000. This new circulation released under the important section of 10(2), and it is made into collaboration with Section 18, which falls under the Settlement and Payment Systems act 2007. This was mainly the previous Act 51 of the year 2007.
Removal of AFA
Before coming in terms with the final circulation, RBI also notify the fact associated with removal of Additional Factor of Verification, also stated as AFA, while dealing with contactless payments, made up to 2000 bucks. Moreover, it has also asked the banks, stakeholders and other financial institutions to comment on the related proposals. Depending on this basic input, and after analyzing the cons and pros of convenience versus security, the new guidelines are finally made and came into action, by none other than RBI. However, there are certain major guidelines, which are also to be followed with this new payment transaction method.
More about guidelines
According to the additional guidelines, it has been found out that contact less payments of NFC is strictly limited to up to 2000 bucks. Beyond this amount, the merchant is asked to mandate to the guidelines of process contact payment. For this segment, both PIN and AFA are termed as compulsory. This guideline is meant for all the merchants and of different categories in the country, where the rules of contactless payments are applicable. The merchants are asked to follow the main guidelines and the additional ones too, before making the final move.
Other guidelines available
Apart from the major point as denoted earlier, it is also said that merchants are not supposed to force the customers to move for contactless payment, even if the amount lies below the 2000 mark. Therefore, contact payment is always possible, for any kind of amount. On the other hand, banks are asked to conduct a much needed velocity check on the amount, below the 2000 price mark, as made by merchants. The most important part is that all the contactless cards must have chips enabled, to make the procedure a success, and after adhering to the norms and regulations of EMV global standards.