The Reserve Bank of India has issued directives which have made it mandatory to have an additional authentication passcode verified by Visa or MSC (Mastercard Secure Code) from August 1 for online shopping. This will in addition to the other information already on the card like name, card number, expiry date and CVV (card verification value) number.
As the date is approaching banks are receiving thousands of requests for additional authentication. Some of the banks are allowing customers to create passwords on their websites and others are sending fresh user IDs and passwords to customers via post. Some of the private banks like Citibank have allowed their customers to use net banking password as their password for online shopping transactions.
ICICI Bank spokesperson informed, ‘‘we have already started the process of making the consumer aware of the service using text message alerts, e-mails and advertisements. Having started the process much ahead, we are well equipped to implement the process fully’’.
ICICI bank has taken extra measures. At the time of generating 6-digit PIN as an additional security layer, it also asks its customer to type a message, known as personal assurance message (PAM) on the same web-page. Only customers will have PAM information. From now whenever you type your credit card number on merchant’s website, it will take you to the bank’s website where you will be required to type in PIN to complete transaction.
Prabhu Rangam, AGM (IT), State Bank of India, informed, ‘‘SBI has already accommodated the required change. Our debit cards are PIN based, so they may not require another layer of security.’’ The SBI credit card customers will have to apply for PIN.
According to industry observers currently due to RBI directive there might be decline in online transactions which will affect the growth of e-commerce industry but in few months of time it will help the industry to grow faster as it will prevent online frauds.