The Master Direction covers internet banking facilities, mobile banking payments, card payments, protecting the interests of customers and grievance redressal.
New Delhi. India’s banking regulator Reserve Bank of India (RBI) has issued a new rule for strengthening and protecting the digital payments of the country. This step has been taken by the RBI due to the increasing cases of online fraud. The Reserve Bank on Thursday issued a master direction for banks and card issuing institutions to ensure the security of digital payments.
Bad news for depositors! RBI restricts cash withdrawals up to Rs 35,000 in this cooperative bank
The Master Direction covers internet banking facilities, mobile banking payments, card payments, protecting the interests of customers and grievance redressal. Master Directions will be applicable to scheduled commercial banks, small finance banks, payment banks and credit card issuing NBFCs.
RBI has given 6 months time
RBI has tightened the rules of payment security. According to the RBI’s new 21-page Master Direction, now banks using third party apps for digital transactions will also have to place the source code of the apps in escrow to ensure that the apps are safe for transactions. RBI has given 6 months time for all entities to ensure compliance.
This Master Direction gives guidelines for Internet Banking, Mobile Payments, Card Payments, Customer Protection and Greaves Redressal Mechanism. For the first time, the RBI has interfered in the operational part of digital payments, whereas earlier the RBI used to leave the responsibility of setting the rules to the NPCI.
