Digital Fraud Update: RBI released a draft to stop digital fraud, the public can give their opinion till August 31..

The Reserve Bank of India (RBI) is taking several steps to prevent banking fraud. Now the bank has introduced two draft proposals to reduce fraud cases.

Aadhaar-Enabled Payment System (AePS)
The bank issued a regulation draft to make digital payments secure. According to this draft, the vendor should get the facility of the Aadhaar-Enabled Payment System (AePS). The bank said that this proposal will help in streamlining the digital payment process. Regarding this, RBI has also instructed NPCI along with banks.

RBI said that if a vendor does not make any payment for the last 6 months, then the bank will have to get KYC (Know Your Customer) done again. At the same time, NPCI has been asked to keep in mind that an Aadhaar-enabled payment system should be implemented in only one bank.

RBI has given people time to comment on this proposal till 31 August 2024. Apart from this, banks and NPCI have been given three months to comply with the instructions.

Additional arrangements for authentication
The Reserve Bank of India has also issued a draft regarding alternative authentication mechanisms for digital payment transactions. The bank said that this will help in giving technological advancement to the digital payment system.