RBI Bans International Payments without 2-Way Authentication

Following reports of misuse of credit cards abroad through malicious online shopping, the Reserve Bank of India has moved quickly to fill the void by making all the global payment gateways to comply with the two-time authentication process that was restricted to India-based transactions so far.

RBI said the rules need to be followed with respect to e-commerce credit card transactions “essentially taking place between two residents in India”. This means that companies abroad need to follow the two-step authentication process, which was circumvented by them by virtue of having an overseas payment gateway.

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