India’s Union Budget 2022 resolves some of the uncertainty around the legitimacy of crypto assets. While crypto assets will not be considered as currency, Finance Minister Nirmala Sitharaman announced that the Reserve Bank of India will be launching a blockchain-based digital rupee this year.
Critical issues in India's digital lending ecosystem were identified by a RBI working group. These include the existence of fake and illegal apps and unscrupulous money recovery practices. Establishment of a self-regulatory body to oversee operations of lending platforms is recommended.
Now that the RBI has issued guidance on how payment system operators must manage risks associated with third-party relationships to help prevent fraud, security experts say that the regulator needs to promote compliance among outsourcers and hold them accountable for fraud prevention.
Global messaging app WhatsApp's instant payment service went live in India on Dec.16. But despite its two-factor authentication being accepted by leading banks, there are concerns about potential security issues.
India's urban cooperative banks need to take a holistic approach to build a security governance structure, opt for an ASP services model and map their business-critical risks to comply with the RBI's security posture guidelines, according to a panel of experts.
To help ensure security as India moves to digital payments, enterprises need to educate their customers to help them understand potential risks and take the right precautions, says payments expert Navin Surya.
The Reserve Bank of India's draft of a framework for new self-regulatory organizations, including one that would help oversee payment system operators, fails to adequately address security issues, some observers say.
The need for enhanced business agility and secure remote access to support digital transformation has led to the adoption of the security access service edge, or SASE, model, says Rajpreet Kaur, senior principal analyst at Gartner.
Organizations that have shifted to a remote workforce as a result of the COVID-19 pandemic should help in the battle against cybercrime by reporting all security incidents to law enforcement officials for investigation, says Brijesh Singh, inspector general of police, the government of Maharashtra.
Organizations in India need to ramp up their authentication efforts in light of a 40% increase in cashless transactions since the start of the COVID-19 pandemic, which has led to increases in attempted fraud, security experts say.
The Reserve Bank of India's plans to create a self-regulatory organization by April to help oversee the digital payments system could help reduce the complexity of RBI's efforts to help ensure payments security, some security experts say.
The Reserve Bank of India has decided to allow all banks to use remote video-based "know your customer" authentication for onboarding new clients. But some observers say many Indian banks may prove reluctant to use video KYC because they lack the necessary technology and new customers lack smartphones.
Starting Jan. 1, State Bank of India will no longer accept magnetic stripe debit card transactions and will accept only EMV chip-based cards in compliance with an RBI mandate, which is designed to help prevent card fraud, including skimming and cloning.
WhatsApp, the messaging service owned by Facebook, says it's ready to launch its digital payment services, WhatsApp Pay, in India following its beta test. But the Supreme Court says WhatsApp first must comply with RBI's data localization requirements.