Is It Time to Ditch the OTP for Small Online Payments?

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By Pranay Parab | Updated: 8 December 2016 15:08 IST

A new RBI notification makes it easy for you to make payments online. Two-factor authentication is no longer mandatory for online payments under Rs. 2,000, according to the notification. This means that you probably won't have to wait for the one-time password that arrives via SMS or enter a second password for low-value online transactions. What does this mean for India? Payments experts Gopal and Sandeep join host Pranay to discuss. 

(Also see: No More OTP for Online Transactions Under Rs. 2,000, Says RBI)

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We start off by explaining what the notification means and answer a lot of basic questions. If you were wondering whether you can already start paying online without OTP or whether all banks will implement this feature, you are in the right place. Sandeep asks some important questions about the notification, something most people would be wondering, before the discussion moves to security.

(Also see: Two-Factor Authentication Is a Bother - Can It Get Better?)

Does this mean your online transactions are more vulnerable to fraud? Is this move also going to improve security of your card payments in some way? Gopal puts on his explainer hat and talks about all the security concerns, why you should be concerned, and the measures you can take to keep your account secure. The important detail here is that the process is opt-in, which makes a world of a difference because most people won't have to enable this.

(Also see: Thanks RBI, but I'm Holding on to My OTP)

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