India's central bank drafts contactless guidelines
NFC payments up to 2,000 rupees ($32) in value would no longer require two factor authentication under the proposed rules.
The Reserve Bank of India has published a draft of new guidelines that would allow contactless transactions of up 2,000 rupees ($32) without two-factor authentication. Transactions above this amount would still require signature or PIN authentication, according to a report by livemint. Additionall PIN authentication will still be required for all ATM transactions and card-not-present transactions.
In a statement, the central bank said:
The RBI has been receiving requests from customers and entities in certain niche segments indicating the need to foster innovative payment products or processes and for enhancing the convenience factor in certain use cases or type of transactions without the need for having the mandatory additional factor of authentication.
The report said that RBI might give individual banks discretion to set limits for contactless transactions below the suggested 2,000 rupee amount.
The RBI will accept online comments on the proposal through April 4.