The Reserve Bank of India (RBI) has removed the mandatory two-factor authentication for transactions below Rs 2,000 using NFC based credit and debit cards across all merchant categories in the country to promote contactless technologies. The banking regulator also advised all banks to put in sufficient velocity checks (how many such small value transactions will be allowed in a day / week / month) as considered appropriate. However, the RBI in its circular said that the relaxations will not apply to ATM transactions and card not present transactions (i.e. for online transactions using cards) and two-factor authentication will still apply to them. Transactions beyond Rs 2,000 limit will also continue to be treated as contact payment, wherein the additional authentication would still be mandatory, the RBI added. The RBI also added that customers cannot be compelled into making a contactless payment,…
