The central bank has directed banks to strengthen the existing payment infrastructure and future proofing system along with adoption of fraud risk management practices within a period of next 12-24 months
Mumbai: In order to minimise fraud cases and ensure security of transactions, the Reserve Bank of India (RBI) on Thursday asked banks to implement various safety measures related to credit card and debit card usage over a period of next two years, reports PTI.
The central bank has directed banks to strengthen the existing payment infrastructure and future proofing system along with adoption of fraud risk management practices within a period of next 12-24 months, RBI said in a notification.
“The increased usage of credit/debit cards at various delivery channels also witnessed the increase of frauds taking place due to the cards being lost/stolen, data being compromised and cards skimmed/counterfeited. There is, therefore, an imperative need to secure such card based transactions...,” it said.
It also emphasised on the need to migrate to Euro pay MasterCard Visa (EMV) chip and PIN based cards from the present magnetic strip cards as the later is vulnerable to skimming and cloning.
“The need for a complete migration to EMV chip and PIN based cards could be considered based on the progress of ‘Aadhar’ (Unique Identification Card) in about 18 months,” it noted.
As per the circular, the central bank has directed banks to implement improved fraud risk management practices by 30 September 2012. The banks have also been directed to strengthen merchant sourcing and monitoring process by 30 September 2012.
The central bank also given a timeframe till 30 September 2013 to banks for securing the technology infrastructure.
To strengthen infrastructure for accepting these cards, RBI has said that commercial readiness of acquiring infrastructure to support PIN at POS (points of sale) should be ready by 30 June 2013.
Similarly, the enablement of all POS terminals to accept debit card transactions with PIN should be completed by 30 June 2013.
The apex bank also directed banks to be ready from technical perspective to issue EVM cards by 30 June 2013.
Refiners have tapped Saudi Arabia, Kuwait and Iraq to cover for any supply disruption from Iran, which accounts for 12% of the nation’s oil supplies
Kolkata: Commerce secretary Rahul Khullar on Thursday said a long-term solution to the issue of oil payments to Iran will be in place in a month, reports PTI.
“I am confident that payment crisis will be resolved in a month’s time,” Mr Khullar said here on the sidelines of the Indian Tea Association AGM.
Indian refiners are now paying for crude oil bought from Iran through a Turkish bank, after the Reserve Bank of India (RBI) snapped a long-standing route used to pay for imports from the Persian Gulf nation.
When asked about the Turkey route, Mr Khullar said it is a ‘short-term’ solution.
Iran, which has been selling crude oil on credit since late December, when the RBI halted the use of a clearing mechanism under US pressure, had on 27 June written about stopping supplies from August if the dues are not paid.
Refiners have tapped Saudi Arabia, Kuwait and Iraq to cover for any supply disruption from Iran, which accounts for 12% of the nation’s oil supplies.
Mr Khullar said payment in rupee was one of the options which was being looked into.
Meanwhile, due to the payment related issues with Iran, tea price, especially orthodox was subdued by Rs10 a kg this year compared to the previous year.
“Between January to August tea export to Iran was down four million kg compared to previous year,” Indian Tea Association secretary general Manojit Dasgupta said.
In the midst of risk aversion by global investors in the emerging stock markets, rupee has lost value sharply against the US currency. Crossing Rs49, the Indian currency is moving fast towards the Rs50-to-a-dollar mark
New York: As the Indian currency moved closer towards the Rs50-to-a-dollar mark, finance minister Pranab Mukherjee on Thursday said the Reserve Bank of India (RBI) will intervene in the foreign exchange market “as and when the situation warrants”, reports PTI.
However, “Right now, there is no such situation,” he told reporters here, after meeting leading Indian industrialists at an investment forum.
“The RBI governor has made it quite clear that as and when the situation warrants, the RBI will intervene. Right now, there is no such situation,” Mr Mukherjee said.
In the midst of risk aversion by global investors in the emerging stock markets, rupee has lost value sharply against the US currency. Crossing Rs49, the Indian currency is moving fast towards the Rs50-to-a-dollar mark.
While a weak rupee helps exporters, it poses a serious problem for a country which meets over 75% of its crude oil requirement through imports. The landed cost of imports becomes expensive, as the local currency loses value against the US dollar.
Mr Mukherjee pointed out that the international environment is an “area of concern”, particularly the high ratio of sovereign debt to the gross domestic products (GDPs) of euro zone nations and the slow pace of recovery in industrialised countries.
Inflationary pressure and forex volatility in emerging markets is posing serious concerns, he added.