What changed
RBI has issued a circular to all Primary Urban Co-operative Banks (UCBs) requiring them to implement enhanced security and risk mitigation measures for online credit and debit card transactions. The directive is based on a separate circular from the Department of Payment and Settlement Systems (DPSS) dated February 18, 2009, and is issued under Section 18 of the Payment and Settlement Systems Act, 2007.
What it means for you
UCBs must now strengthen their security protocols for card-not-present transactions to reduce fraud risk. This aligns with broader RBI efforts to secure digital payments. Banks need to review and upgrade their card transaction systems and processes to comply with the enclosed DPSS guidelines.
What you must do
- Review the enclosed DPSS circular (DPSS.No.1501/02.14.003/2008-09 dated Feb 18, 2009) for detailed security measures.
- Implement enhanced risk mitigation measures for all online credit and debit card transactions.
- Acknowledge receipt of this circular to your respective RBI Regional Office.
- Update internal policies and train staff on the new security requirements.
Who it affects
All Primary Urban Co-operative Banks (UCBs), Chief Executive Officers of UCBs, Card payment operations teams at UCBs
What is the legal basis for this circular?
The circular is issued under Section 18 of the Payment and Settlement Systems Act, 2007, which empowers RBI to issue directions to payment system participants.
Do we need to take any action beyond implementing the security measures?
Yes, you must acknowledge receipt of this circular to your respective RBI Regional Office as specified in paragraph 2.
What types of transactions are covered?
The circular covers online credit and debit card transactions, focusing on security issues and risk mitigation measures.