Cash & Liquidity ManagementPaymentsElectronic/MobileRBI: Companies Using a Foreign Gateway Must Still Use 2FA for CNP Transactions

RBI: Companies Using a Foreign Gateway Must Still Use 2FA for CNP Transactions

Last week, the Reserve Bank of India (RBI) mandated that companies that accept card-not-present transactions in India using a foreign gateway must abide by regulations that require two-factor authentication.

According to the new site Card Not Present, the Indian central bank decided to take action after the launch of the taxi app and service Uber launched in India. In India, passwords are required for payment in card-not-present (CNP) transactions. However, Uber charges customer cards automatically after a driver drops a customer off at his or her destination and new further verification of the customer’s identity is required.

Since Uber was using a foreign gateway and funds were leaving the country, the taxi service insisted that it was not subject to India’s two-factor rule. The RBI is now insisting that it is.

Related Articles

GIMAC and Terrapay announce real-time payments for Central Africa

Electronic/Mobile GIMAC and Terrapay announce real-time payments for Central Africa

1w GTNews
Cashless economy puts financial inclusion at risk

Banking Risk Management Cashless economy puts financial inclusion at risk

4m Benjamin Anderson
Putting GDPR and PSD2 in silos may be problematic: AccessPay execs

Banking Putting GDPR and PSD2 in silos may be problematic: AccessPay execs

7m Victoria Beckett
Impatient innovation: the race to go real-time in commercial banking

Banking Impatient innovation: the race to go real-time in commercial banking

7m James Methe
Keeping track of treasury in a world of faster payments

Clearing & Settlement Keeping track of treasury in a world of faster payments

9m Jerald Seti
Do carrier billing payments have a future under PSD2?

EEA Do carrier billing payments have a future under PSD2?

10m Victoria Beckett
The next generation of contactless payments

Electronic/Mobile The next generation of contactless payments

10m Alara Basul
The future is mobile, regardless of regulations

Electronic/Mobile The future is mobile, regardless of regulations

10m Victoria Beckett