All banks operating in India must add security measures for credit card transactions using interactive voice response systems that enable cardholders to access their card information by Jan. 1, the Reserve Bank of India announced in an April 28 statement. The central bank believes the systems will improve security by adding an extra step to the authentication process.
The reserve bank last year asked all banks to establish additional authentication and validation measures, except for voice-response systems (see story).
It also asked for an extra step in the authentication process for card-not-present credit card transactions, and when the rules went into effect in August banks began redirecting online credit card transactions to Verified by Visa and MasterCard SecureCode.
The online-verification schemes require customers to key in an extra password to authenticate their payments.
“After extensive deliberations with the banks/card companies, it has been decided to extend this requirement of additional authentication/validation to all card-not-present transactions, including [interactive voice response] transactions,” the reserve bank said in its statement.
Under these new measures, banks also must send online alerts to customers for all transactions worth 5,000 rupees (US$112 or 85 euros) or more. The central bank made a similar requirement for card-not-present transactions last year.