No PIN Required for NFC-based Payments below Rs 2000: RBI
The Reserve Bank of India (RBI) has eased the norms for payment based on NFC (Near-field Communication) or contactless cards.
The apex bank said no PIN is required if the transaction amount is below Rs. 2000.
Earlier, the RBI mandates required that the sender enters a PIN or a one-time password for authentication.
Of late, the Reserve Bank has been receiving requests from customers and entities in certain niche segments indicating the need to foster innovative payment products / processes and for enhancing the convenience factor in certain use cases / type of transactions without the need for having the mandatory additional factor of authentication (AFA). The requests have been examined from the perspective of the trade-off between security and convenience in card transactions and need for relaxation in extant instructions with suitable safeguards to protect customer interest in light of availability of new technologies. One such technology is that of Near Field Communication (NFC) which is used in contactless cards, the RBI said in a release.
As of today, only the ICICI banks have rolled out NFC-based cards while the State Bank of India (SBI) has announced its plan to issue contactless cards.
The NFC-based cards require a special kind of PoS terminal known as Electronic Data Capture (EDC) machine.
However, experts believe the awfully low number of EDC machines could affect the adoption of NFC-based cards.