RBI worried over the rising online banking frauds

The apex bank Reserve bank of India is quite concerned over the increasing online banking frauds. In order to control these frauds RBI has suggested banks to come up with a two stage authentication process.

It has been reported that the online banking of all the banks should be have authentication environment for password- based two-factor authentication as well as Public key infrastructure(PKI) -based system for authentication. Further the banks must aware customers regarding the risks associated with the online banking transactions. Customers should be provided with the facility to choose the authentication method for ensuring security in online transactions. Already RBI had initiated various PKI enabled electronic payments systems introduced by RBI such RTGS, NEFT, CBLO, Forex Clearing, Government Securities Clearing, and Cheque Truncation System.

The aim of this measure is to ensure safe and secure online transactions, so that without ant problem customers can use online banking facilities. Banks may also come up with three phase PKI implementation process for the authentication