RBI makes credit card PIN necessary by August 1
The Reserve Bank of India, through a recent circular, has urged banks to increase online security measures, directing banks to make additional authentication mandatory for credit/debit card online transactions from August 1. Banks have to issue a PIN code, called as Verified by Visa or MasterCard Secure Code, which will be known only to the customers.
Customers have to use this second verification PIN code, apart from the Card Verification Value Number (CVV), for making purchases. Banks will be liable to attract penalty under the Payment and Settlement Systems Act 2007 in case of non-adherence with the directive.
Meanwhile, both public sector and private banks have started issuing the mandated PIN to their card holders through online registration.
Prabhu Rangam, AGM (IT), State Bank of India, said: "SBI has already accommodated the required change. Our debit cards are PIN based, so they may not require another layer of security."
Experts are, however, tight-lipped about the additional security measures saying that pass codes, which are static passwords, are vulnerable to be easily phished or hacked.
A banking expert said: "There may be some challenges in the initial stage as banks have to be ready with the software required to identify the second authentication or password while making transactions."