The new framework will streamline user experience while empowering them with choice and convenience
FinTech BizNews Service
Mumbai, February 9, 2024: Shaktikanta Das, Governor, Reserve Bank of India, announced a number of decisions after the MPC meet on Thursday. In 2023, more than 37 crore users undertook AePS transactions, which points to the important role played by AePS in financial inclusion. Rahul Jain – CFO, NTT DATA Payment Services India, has shared interesting insights on these measures: The RBI's move to strengthen the Aadhaar Enabled Payment System (AePS) is a welcome step. The proposal to streamline the onboarding process will reinforce the security measures of AePS and additional fraud risk management will prevent any fraudulent activities surrounding this payment system. This innovative approach, once details emerge, is likely to empower users with smoother, more convenient digital payments.
India's fintech ecosystem takes a leap forward with the Central Bank's innovative framework for digital transaction authentication. This principle-based approach promises not only enhanced security and efficiency but also greater flexibility for users. Currently, SMS-based one-time passwords (OTPs) for Additional Factor of Authentication (AFA) is more popular. Apart from this, there are other platforms like email, WhatsApp and even card grid numbers for AFA. The new framework will streamline user experience while empowering them with choice and convenience. Although more details are awaited, the proposed new framework will further combat financial frauds thereby bolstering digital security.
The CBDC Retail (CBDC-R) pilot currently enables Person to Person (P2P) and Person to Merchant (P2M) transactions using Digital Rupee wallets provided by pilot banks. It is now proposed to enable additional use cases using programmability and offline functionality.
RBI's proposed Central Bank Digital Currency (CBDC) enhancements signal a positive step for India's financial future. Programmability and offline functionality in CBDC Retail (CBDC-R) promise speed, security, and convenience for users. Faster transactions, both online and offline, will be possible with programmable features and secure offline options. This visionary move empowers users with flexibility and ease, boosting India's fintech ecosystem. In the fast-evolving landscape of finance, CBDC stands at the forefront of transformation. This transformative initiative is set to infuse renewed momentum into India's financial technology ecosystem.
