RBI has made full preparations to stop banking fraud. For this, a new framework has been drafted recently. This alternative authentication mechanism will create an additional layer of security for users making online or digital payments. Considering the way online fraud incidents have increased in the last few years, this step of the Reserve Bank will prove to be a relief for crores of online payment users in the country.
What is AFA (Additional Factor of Authentication)?
The central bank has put the security of digital payments on top priority. For this, the new Authentication Factor Aggregation (AFA) or Additional Factor of Authentication will create a new security layer for online payments made by users. This security layer will improve the already running preventive method i.e. SMS based OTP (One Time Password).
The Reserve Bank said in its draft guidelines that the need for AFA has been felt keeping in mind the security of people making digital payments. SMS-based OTP was first used as AFA for the digital payment ecosystem. Although the OTP-based security method is working properly right now, but due to technological advancement, using alternative authentication mechanisms is the need of the hour.
How will AFA work?
The central bank said in its guidelines that any credential input used by the customer will be used for AFA, which can be verified for payment instructions. RBI has placed it in the three categories given below.
Password, PIN or phrase set by the users will be included for AFA.
Apart from this, hardware or software tokens can be used.
Not only this, biometric i.e. fingerprint can also be used to increase the level of security.
Reserve Bank can use PIN, Password, Biometric or Security Token in addition to OTP for a risk free digital payment ecosystem. In this way, online banking fraud can be curbed in the coming days.
