Credit card usage over phone will employ an additional security layer from tomorrow as the Reserve bank of India (RBI) has made it mandatory for customers to get a single-use password from banks for every transaction.
Banks are required to comply with the new guidelines with effect from February 1, after which the customers would be declined any credit card related telephonic transaction without an additional one-time password (OTP).
RBI’s directive was earlier scheduled to come into effect from January 1. However, the deadline was extended by one month after some banks sought more time. After consultations among top officials, as also with the bank representatives, RBI gave banks time till February 1 for putting the new measure in place.
OTP will be required for all credit card transactions over phone, including payments and automated IVR (Interactive Voice Response) services. OTP will be valid for a single use and would remain in effect for two hours. The customers would need to generate separate OTPs for each IVR transaction.