Get SMS Alerts for Online Card Transactions

Get SMS Alerts for Online Card Transactions

Techtree News Staff, Feb 19, 2009 1357 hrs IST

Additional authentication/validation to be offered to online banking customers

As the trend of online transactions increase, so have credit and debit card frauds through the same medium. If fear of the latter is keeping you from online dealings, there is solace coming up.

August 1, 2009 onwards, any transaction that you make online using your credit or debit card will need you to type out a password to carry out the operation. Also, if your transaction exceeds Rs. 5000, then the bank will be obligated to send you a text message about the same.

Interactive Voice Response (IVR) transactions will not have to comply with the compulsory password protection procedure for the time being. For this, separate instructions will follow from the bank.

The Reserve Bank of India (RBI) has issued a notification to all the banks in India, making it mandatory for them to develop a system wherein additional authentication/validation is offered to an online banking customer through a password input, followed by an intimation for transactions exceeding Rs. 5000.

In his letter to the banks, RBI's chief general manager G. Padmanabhan states, "RBI has been reviewing various options to enhance the security of online card transactions." The letter deems that the above-mentioned notification has to be strictly followed, on failure of which the banks will be liable for penalty charges.

You can read the original notification here.