The Reserve Bank of India have issued instructions to banks to make mobile and phone banking safe to avoid identity frauds in non branch banking services.
To provide safety banks will have to install an extra cover guaranteeing the legitimacy of the customer carrying out the debit or credit card transaction through the phone. The RBI has strictly warned the banks that if they failed to do so they will have to pay penalty.
The RBI said that banks will have to complete this process by next year in which the debit and credit card customers will given an extra password for IVR (Interactive Voice Response) transactions.
Thus after the new security measure the customer will have to dial another extra password to verify the transaction other than the information which he had previously used for the transaction.
This measure has been taken to stop the increasing number of frauds using non branch methods. Earlier, from April 2009, RBI had instructed the banks to give an extra verification system based on the details not given on the cards, in case the card was not physically present.
However it is planning to extend this measure to include IVR transactions.
The security codes provided for security measures will vary from those seen on the cards.
The banks will also introduce system of ‘Online Alerts’ to the cardholder for the transactions where ‘card is not present’ worth Rs. 5000 and more.
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