Ensuring security of payment systems a big challenge, says Dy Governor, RBI

Jan 19, 2011: Reserve Bank of India's deputy governor KC Chakrabarty today said ensuring security of payment systems and protecting customers' funds is the biggest challenge before central banks and payments systems operators.

Banks should spread awareness to increase usage of newer payment systems, Chakrabarty said, adding, "this (safety and security) is a big challenge to be faced to avoid erosion of customer confidence in the new age payment systems."

Delivering the inaugural address at Banknet's 7th annual conference on payment systems in Mumbai, Chakrabarty said the RBI had mandated the additional factor of authentication for all card-not-present transactions - perhaps the first attempt by any regulator - apprehending security being compromised.

"The RBI is currently in discussion with "banks and the card companies to introduce an authentication system for transactions at POS (points of sale)," Chakrabarty said.

Apart from that, in case of ATM cards, it is also mulling a move over to the more secure "Chip and Pin" cards from the current pin-only system to check instances of cloning, Chakrabarty said.

( Source-PTI)

FOR FULL INAUGURAL ADDRESS by Dr K. C. Chakrabarty, Deputy Governor , RBI at Banknet’s 7th Annual Conference on Payment Systems at Mumbai on Jan 19, 2011 ......Click Here

NOTE: Banknet Conferences are one of the largest organizers of Banking and Technology Conferences from India. Banknet Conferences organizes series of highly focused conferences, seminars and workshops, which provide a platform for knowledge sharing and networking for the professionals. Being part of "Banknet Group" it has access to relevant industry research, information and large database of professionals. More than 700 Financial Institutions / Companies from 24 countries had been represented at Banknet Conferences. This included delegates from nearly every major bank in India. Banknet Conferences had been supported by more than 100 major IT Companies and Financial Institutions from 11 countries. For more ......Click Here

Nearly 100 banks & IT Cos participated at Banknet’s 7th Annual Conference on Payment Systems at Mumbai on Jan 19, 2011.. Now in its 7th year, Banknet's Annual Conference on Payment Systems is the largest payments event in India and has gone from strength to strength. It has on average attracted around 300 senior executives from around the globe. ...Click Here



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