RBI seeks comments on proposed e-payment system
Updated: Feb 08, 2014 01:42:25pm
Mumbai, Feb 8 (KNN) The Reserve Bank of India (RBI) has released a draft technical report on making electronic payment system effective in order to ensure a safe, secure, efficient, robust and sound payment system in the country.
"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.
The RBI has called for public comments on the suggestions given in the report till February 28.
"It is important to note that while technology such as cryptographic systems can assist in non-repudiation efforts, the concept is at its core a legal concept transcending the realm of technology," RBI said.
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).
"Whereas non-PKI enabled payment systems contributed 75 per cent in volume terms but only 6.3 percent in value terms in the year 2012-13," the report added.
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 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.
The RBI has called for public comments on the suggestions given in the report till February 28.
"It is important to note that while technology such as cryptographic systems can assist in non-repudiation efforts, the concept is at its core a legal concept transcending the realm of technology," RBI said.
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).
"Whereas non-PKI enabled payment systems contributed 75 per cent in volume terms but only 6.3 percent in value terms in the year 2012-13," the report added.
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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