RBI launches framework to secure digital payments, allows hedging of gold price risk in IFSC

SBI Chairman Dinesh Khara, elucidated the strategic steps to enhance the robustness of AEPS.

"Proposed measures include streamlining the onboarding of AEPS service providers and introducing additional fraud risk management measures," stated Khara.

To address the rising concerns surrounding digital payment security, the RBI unveiled plans to implement a principle-based framework for authentication.

The SMS-based OTP authentication method is widely popular as an additional factor of authentication (AFA) and is set to be complemented by a comprehensive framework, providing businesses with a secure environment to protect customer data.

Ankit Ratan, CEO & Co-founder at Signzy said, "By adopting a principle-based framework for authentication, businesses will not only curb financial frauds but also provide a secure environment for customers, protecting their data."

Ravi Battula, Head of Payment Security and Merchant Acquiring, Wibmo, a PayU company said, "The RBI's progressive Principle-Based Authentication Framework is reshaping digital transactions. This initiative standardises authentication, enhancing security and reliability. With streamlined processes and clear guidelines, trust among users and businesses grows, fostering wider acceptance and growth in digital payments. This is a welcome move to enable MFA (Multi Factor Authentication), providing additional security while adding convenience; moreover, dependence on SMS will be reduced."

In a move set to impact the financial landscape, resident entities are now permitted to hedge the price of gold in the OTC segment within the IFSC.

Poonam Tondon, Chief Investment Officer at IndiaFirst Life Insurance, believes the RBI has maintained a balanced approach, stating, "Overall, the commentary was balanced with adequate focus on inflation while maintaining the growth outlook."