RBI's New Digital Payment Regulations: What Consumers Need To Know
In the rapidly growing digital payment landscape, the Reserve Bank of India (RBI) has recently introduced a set of regulations aimed at strengthening the safety and security of digital payments in the country. These changes, directed at non-bank payment system operators (PSOs) is aimed at enhancing the security of digital transactions which has seen a rapid surge in the recent years.
According to Rayan Malhotra, the Founder & CEO of NeoFinity, "The RBI's focus on consumer protection and the integrity of the payment ecosystem is evident in these new regulations. The goal of these regulations, to protect consumers and the integrity of the payment ecosystem, is evident in the requirement for real-time fraud monitoring solutions, seen as a significant step towards mitigating risks associated with suspicious transactional behaviour."
What to Expect as a Digital Payment User
For those who use digital payment systems regularly, these new norms are expected to bring several important changes such as:
Real-Time Fraud Monitoring
One of the most important updates is the inclusion of real-time fraud monitoring which will quickly detect and respond to any suspicious activities, offering users a higher level of protection against potential fraud. As Malhotra puts it, "Quicker detection means quicker action, and that’s a win for consumers."
Most important updates is the inclusion of real-time fraud monitoring Automatic Session Termination
Mobile applications will automatically log out users after a period of inactivity, prompting them to re-login, to prevent unauthorised access. This may seem annoying at first, but it is an essential precaution to protect your data, especially if your device is misplaced or left unattended.
'After 10 Years Of NDA, This Is Not Acceptable': Infosys Ex-CFO Mohandas Pai Bemoans EPFO Woes"While it might take some getting used to, automatic session termination is key to safeguarding user data," Malhotra noted.
Increased Alerts and Notifications
Consumers can also expect an increase in transaction-related alerts and notifications. "These alerts could range from transaction confirmations to notifications about unusual account activities, providing consumers more real-time information about their digital transactions and account status," he added.
While these changes are designed to improve security, they may also affect the user experience. Frequent session terminations and increased notifications could be seen as disruptive. Malhotra added, "There’s a balance that needs to be struck between security and convenience. User-friendly interfaces and better consumer education will be key."
Despite the positive reception, there are concerns about how these regulations might affect smaller PSOs. Malhotra pointed out, "Smaller operators might struggle with the demands of these new regulations. It's important that they receive the necessary support to ensure a smooth implementation."
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