Refer Report
New Delhi: The Reserve Bank of India has published draft guidelines to ensure security of Aadhaar-based Payment System (AEPS) in the face of fraud. This is after a lot of news about AEPS misused money. According to the estimate given by the Center in the Parliament yesterday, about 29,000 frauds have been committed in this regard so far. The guidelines will be finalized after seeking comments on the draft.
AEPS system will facilitate cash withdrawal and transfer through micro ATMs in areas where ATMs are not available.
Transactions are done using Aadhaar number and biometric data (finger print). The main draft proposal is to carry out proper verification of operators (AEPS Touchpoint) providing AEPS biometric service to banks. If an operator has not done a single transaction in 6 months then the banks have to re-check the KYC. An operator can only work for one bank. The transaction limit should be fixed according to their risk profile. The RBI circular also said that the operator should be constantly monitored.
Image: istockphoto/Deepak Sethi
OTP is no longer the only means of payment
Currently OTP (One Time Password) via SMS is most popular for verification purpose of digital payments. Instead of OTP through SMS, OTP through WhatsApp/Email, authentication app, passkey, security key and biometrics are also available. RBI has also prepared a draft framework to apply these to digital payments.
Source: Malayalam