Question

Which of the following statements accurately reflects the recent draft circular proposed by the Reserve Bank of India (RB

Q: Answer-Which of the following statements accurately reflects the recent draft circular proposed by the Rese...

The RBIs draft circular aims to enhance digital-payment security by proposing an additional authentication factor that must be robust, dynamically created, and used only once. However, it exempts certain transactions, such as contactless card transactions below 5,000 and insurance premiums, from this requirement. The proposal also emphasizes the need for customer consent and outlines due diligence procedures for Aadhar-enabled Payment System AePS touchpoint operators, ensuring ongoing compliance with existing regulations.

I regarding digital payments?

A The new draft circular proposes the elimination of authentication for all transactions to simplify digital payments.

B The draft circular mandates a single authentication factor for transactions under ₹15,000 and exempts transactions over ₹1 lakh from this requirement.

C The RBI draft circular requires an additional authentication factor that must be dynamic and used only once, with exemptions for specific types of transactions.

D The draft circular suggests that all digital payments should be processed without customer consent for new authentication factors.

E The proposal includes exempting all insurance premiums from the new authentication requirements, regardless of the amount.

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