RBI allowed Tap And Pay without PIN for transactions up to 2000 rupees [ Current Affairs ]

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Public & Private bank regulator RBI allowed “Tap And Pay” without PIN for transactions up to 2000 rupees. Customer need for additional factor authentication (AFA) for small value card present transactions only using contact-less cards. In case, higher amount than 2100 then used the customer must be given the option of contact payment and would require pin authentication.

Banks must give customers the option to choose to pay using the regular swipe method without using NFC irrespective of the amount involved.

Tap and pay application based on communication technology in payment cards and it is the use of instead of the traditional swiping of the card and punching in payment details, all the customer needs to do is wave a card in front of an acceptance device for the bill to be settled.

RBI allowed contactless card and it should also incorporate the latest EMV Chip technology for enabling payment beyond 2000 rupees and pay electronic payments at retail outlets, in transport services and for toll payments.

In developed country, where payment technology has advanced NFC cards are used for payment of metro or bus fares or in electronic toll collection.

- Published on: May 20, 2015