RBI extends date for comments on proposed e-payment system
Updated: Mar 06, 2014 01:50:59pm
Mumbai, Mar 6 (KNN) The Reserve Bank of India (RBI) has extended the date for sending comments on its report on making electronic payment system effective in order to ensure a safe, secure, efficient, robust and sound payment system in the country.
“The comments may now be emailed or sent by post…on or before March 15, 2014,” RBI said in a release.
The Reserve Bank of India had, in September 2013, constituted a group to prepare an approach paper for enabling PKI for the Payment Systems in India comprising members from banks (State Bank of India and ICICI bank), Institute for Development and Research in Banking Technology-Certifying Authority (IDRBT-CA), Controller of Certifying Authority (CCA), New Delhi and Reserve Bank of India [(Department of Technology (DIT), Department of Payment and Settlement Systems (DPSS), Department of Government and Bank Accounts (DGBA) - Core Banking Solution (CBS) and Chief Information Security Officer (CISO)].
The Report was released on February 7, 2014 on the RBI website for public comments to be submitted till February 28.
"The objective of an effective payment system is to ensure a safe, secure, efficient, robust and sound payment system in the country," RBI said in the report on 'Enabling Public Key Infrastructure (PKI) in Payment System Applications'.
PKI is a set of hardware and software to help users with internet for exchanging data and money securely and privately by using a pair of public and private cryptographic passwords.
There are various PKI-enabled electronic payment systems introduced by the RBI, such as RTGS, NEFT, CBLO, Forex Clearing, Government Securities Clearing, and Cheque Truncation System (CTS), according to the report.
"Whereas non-PKI enabled payment systems contributed 75 per cent in volume terms but only 6.3 per cent in value terms in the year 2012-13," the report .
Of the non-PKI enabled payment systems, MICR clearing and non-MICR clearing contributed 37 per cent and 10 per cent in volume terms and 69 per cent and 25 per cent in value terms.
"In order to ensure a safe, secure payment system in the country and to ensure legal compliance, digital technology, such as PKI may be used," it said.
The report also highlights, among other things, security features in existing payment system applications and feasibility in implementing PKI in all payments system applications.
The report said that the banks may carry out in phases PKI implementation for authentication and transaction verification.
Payment systems are subjected to various financial risks, such as, credit risk, liquidity risk, systemic risk, operational risk, legal risk.
As customers continue to increasingly adopt electronic payment products and delivery channels for their transactional needs, it is necessary to recognise that security and safety have to be robust,” the apex bank said.
“Any security related issues resulting in fraud have the potential to undermine public confidence in the use of electronic payment products which will impact their usage. Necessary measures to strengthen security have to be taken as such attacks are growing in scale and sophistication,” RBI added. (KNN/SD)
“The comments may now be emailed or sent by post…on or before March 15, 2014,” RBI said in a release.
The Reserve Bank of India had, in September 2013, constituted a group to prepare an approach paper for enabling PKI for the Payment Systems in India comprising members from banks (State Bank of India and ICICI bank), Institute for Development and Research in Banking Technology-Certifying Authority (IDRBT-CA), Controller of Certifying Authority (CCA), New Delhi and Reserve Bank of India [(Department of Technology (DIT), Department of Payment and Settlement Systems (DPSS), Department of Government and Bank Accounts (DGBA) - Core Banking Solution (CBS) and Chief Information Security Officer (CISO)].
The Report was released on February 7, 2014 on the RBI website for public comments to be submitted till February 28.
"The objective of an effective payment system is to ensure a safe, secure, efficient, robust and sound payment system in the country," RBI said in the report on 'Enabling Public Key Infrastructure (PKI) in Payment System Applications'.
PKI is a set of hardware and software to help users with internet for exchanging data and money securely and privately by using a pair of public and private cryptographic passwords.
There are various PKI-enabled electronic payment systems introduced by the RBI, such as RTGS, NEFT, CBLO, Forex Clearing, Government Securities Clearing, and Cheque Truncation System (CTS), according to the report.
"Whereas non-PKI enabled payment systems contributed 75 per cent in volume terms but only 6.3 per cent in value terms in the year 2012-13," the report .
Of the non-PKI enabled payment systems, MICR clearing and non-MICR clearing contributed 37 per cent and 10 per cent in volume terms and 69 per cent and 25 per cent in value terms.
"In order to ensure a safe, secure payment system in the country and to ensure legal compliance, digital technology, such as PKI may be used," it said.
The report also highlights, among other things, security features in existing payment system applications and feasibility in implementing PKI in all payments system applications.
The report said that the banks may carry out in phases PKI implementation for authentication and transaction verification.
Payment systems are subjected to various financial risks, such as, credit risk, liquidity risk, systemic risk, operational risk, legal risk.
As customers continue to increasingly adopt electronic payment products and delivery channels for their transactional needs, it is necessary to recognise that security and safety have to be robust,” the apex bank said.
“Any security related issues resulting in fraud have the potential to undermine public confidence in the use of electronic payment products which will impact their usage. Necessary measures to strengthen security have to be taken as such attacks are growing in scale and sophistication,” RBI added. (KNN/SD)
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