These steps, along with advanced encryption, authentication technologies, second channel notifications, and risk-based transaction monitoring, aim to foster a secure and reliable digital payments ecosystem.

RBI uses various channels like digital, print, and audio-visual media through the “RBI Kehta Hai” program to create customer awareness. The central bank issues master directions on digital payment security controls to banks and regulated entities to safeguard customer data confidentiality and integrity.

Also Read: RBI Takes 8 Steps for Secure Digital Payments

Shikhar Aggarwal, Chairman of BLS E-Services, advises users not to share sensitive information like card details, passwords, PINs, OTPs, CVVs, UPI-PIN, and to avoid financial transactions on public Wi-Fi networks. Additionally, users are urged not to store crucial banking data on their mobiles, emails, electronic wallets, or purses.

RBI Takes 8 Steps for Secure Digital Payments: List

1. Specific OTPs required from a secondary channel for adding new payees.
2. New OTPs mandated for high-value transactions.
3. Managed time limits for OTPs to minimize misuse.
4. Use of digital signatures and Key-based Message Authentication Codes (KMAC) to prevent unauthorized transactions.
5. Customer education on rights, responsibilities, and risks under the Consumer Protection Act and internet banking.
6. Alternate notification method for transactions exceeding a specified value.
7. Guidance on responding to SSL or EV-SSL certificate alerts to prevent phishing.
8. Implementation of systems to assess transaction patterns and highlight unusual activities, ensuring alignment with customer behavior.

Also Read: RBI Takes 8 Steps for Secure Digital Payments

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Inflation vigilance is crucial said Das warns on MPC 2024

Among the six members, five voted to maintain the repo rate at 6.5%, keeping the policy stance unchanged. However, member Jayanth Varma advocated for a 25% reduction in the repo rate and a shift to a neutral stance.

“We must remain committed to successfully navigating the ‘last mile’ of disinflation which can be sticky. As markets are front-running central banks in anticipation of policy pivots, any premature move may undermine the success achieved so far,” he wrote in the minutes.

Also Read: Inflation vigilance is crucial said Das warns on MPC 2024

“Food price uncertainty remains a major source of volatility for headline inflation outlook. Growing geo-political tensions and supply chain disruptions due to new flash points also pose further risks to the inflation outlook,” Das wrote.

The policy imperative at the current juncture, wrote Das, is to remain focused on achieving the 4 per cent inflation target on a durable basis, keeping in mind the objective of growth, he wrote.

Das expressed optimism that the current monetary policy is progressing well, with steady growth and inflation moving towards the target. Despite a rise in headline inflation to 5.1% in January, above the RBI’s 4% target, Das outlined expectations of a softening trend to an average of 4.5% in 2024-25.

Also Read: Inflation vigilance is crucial said Das warns on MPC 2024

“Monetary policy must remain restrictive and maintain downward pressure on inflation while minimising the output costs of disinflation. It is only when inflation subsides and stays close to the target lastingly that policy restraint can be eased,” Patra wrote.

Deputy Governor Michael Patra highlighted persistent food supply pressures hindering disinflation, while external member Varma projected an average inflation of 4.5% in 2024-25. MPC member Ashima Goyal suggested that commodity price shocks might be short-lived, and the expected rise in food prices remains uncertain.

“I do not believe that such a high real rate is required at this stage to drive inflation down to the target of 4 per cent. It is true that economic growth is holding up well, but there is no evidence at all that the economy is overheating,” Varma wrote.

Also Read: Inflation vigilance is crucial said Das warns on MPC 2024

“Then it would not be necessary to keep rates high just because supply shocks are expected in the future. But we can wait to test this for some more time. So, I vote for status quo on rates though headline inflation FY25 projections of 4.5 per cent gives room to cut,” she wrote.

“Avoiding any premature move will help us guard against the biggest challenge to credibility, i.e., having to backpedal later if faced with upside surprises to inflation,” Ranjan wrote.

MPC member Rajiv Ranjan acknowledged the challenges in managing the final phase of inflation’s descent, noting historical tendencies for inflation shocks to persist. External member Shashanka Bhide emphasized the need to focus on achieving the inflation target consistently, given the current elevated food inflation levels and strong overall economic growth.

Also Read: Inflation vigilance is crucial said Das warns on MPC 2024

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Paytm Founder Vijay Shekhar Sharma Meets Sitharaman: Reports

Reports suggest that One97 Communications, the parent company of the payment services firm, faced a significant decline in its stock value following major business restrictions imposed by the Reserve Bank of India (RBI) against Paytm Payments Bank Ltd (PPBL).

Earlier on the same day, Reuters revealed that Sharma and Paytm officials had met with the RBI on February 5 to discuss regulatory concerns.

These meetings come after the RBI instructed Paytm Payments Bank on January 31 to halt new deposits in its accounts and digital wallets from March due to supervisory concerns and non-compliance with rules.

As per Paytm Founder Vijay Shekhar Sharma Meets Sitharaman. Sources mention ongoing discussions to address regulatory concerns and compliance issues with both the RBI and the ministry.

Paytm has requested an extension of the February 29 deadline from the RBI and seeks clarity on the transfer of its license for the wallets business and Fastag digital highway toll payment service, according to sources.

“The RBI listened to Paytm without making any commitments,” said another source.

Responses from Paytm, RBI, and the finance ministry to Reuters’ request for comment are still pending.

As of February 5, Paytm’s shares had dropped by about 42%, causing a $2.5 billion reduction in its market value. Concerns arose about the broader business impact, as Paytm Payments Bank plays a crucial role in the digital payments app, competing with platforms like Walmart’s PhonePe and Google.

As Paytm Founder Vijay Shekhar Sharma Meets Sitharaman. On February 6, the stock hit a record low following a Reuters report on the Enforcement Directorate investigating potential violations of foreign exchange rules by the company.

A Paytm spokesperson refuted the allegations, denying any foreign exchange law violations.

There are speculations that the RBI’s regulatory actions might lead to the cancellation of Paytm’s license, according to a source familiar with the matter from last week.

On Tuesday, Paytm’s shares partially recovered, closing 2.9% higher at 451.15 rupees, after an earlier 8% increase.

Avinash Gorakshakar, head of research at Profitmart Securities, suggested that this share move could be a “dead-cat bounce” amid ongoing negative news affecting the stock.

Bernstein lowered its target share price but maintained an outperform rating, anticipating Paytm’s ability to successfully navigate operational changes required to overcome the imposed restrictions.

Also Read: Paytm Founder Vijay Shekhar Sharma Meets Sitharaman

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