RBI may introduce new tedious rules for online transactions
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The Reserve Bank of India is planning to make online payments more secure by introducing a 16-digit number. The bank wants to introduce a system that demands that the customer enter all their card details for every online transaction. The new regulations are expected to come into effect from January 2022. Users will have to enter their name, 16-digit card number, expiry date, and CVV every time they make a purchase. The process will have to be repeated every time someone uses Amazon, Flipkart, Paytm, Google Pay, or Netflix, reported NDTV.
The revised rules are aimed at preventing e-commerce companies like Amazon from saving the customers' card information on their servers and databases. The central bank wants to ensure customer safety and data security even though every online transaction will become a tedious process.
E-commerce merchant sites and payment gateways are currently allowed to store card information on their servers if the user chooses to save them. This information is used to verify and approve transactions. Users are only required to enter the CVV number and OTP at the time of making the transaction.