The Reserve Bank of India ( RBI ) is taking several steps to prevent banking fraud. Now the bank has presented two draft proposals to reduce fraud cases.

Aadhaar-Enabled Payment System (AePS)

The bank issued a regulation draft to make digital payments secure. According to this draft, vendors should get the facility of Aadhaar-enabled payment system ( AePS ). The bank said that this proposal will help in streamlining the digital payment process. Regarding this, RBI has also given instructions to NPCI along with banks.

RBI said that if a vendor does not make any payment for the last 6 months, then the bank will have to get KYC (Know Your Customer) done again. At the same time, NPCI has been asked to keep in mind that Aadhaar-enabled payment system should be implemented in only one bank.

RBI has given people time to comment on this proposal till 31 August 2024. Apart from this, banks and NPCI have been given a period of three months to comply with the instructions.

Additional arrangements for authentication

The Reserve Bank of India has also released a draft on alternative authentication mechanisms for digital payment transactions. The bank said that this will help in giving technological advancement to the digital payment system.