Online shopping major Snapdeal has adapted a stumbled approach for single-factor authentication for small value transactions, starting initially with a cap of Rs 3,000, says a PTI report.
At present, two-step authentication is necessary for all transactions. Wherein, the first step of authentication is entering PIN followed by feeding the secured code or One Time PIN.
Further, the RBI in December had highlighted that it will soon come out with single factor authentication payment norms for low value e-commerce transactions without any compromise on security.
Commenting on the matter, Snapdeal’s Founder and Chief Executive, Kunal Bahl said: "I think RBI should follow it in steps. May be the first step should be somewhere around the Rs 3,000 mark. Once, the RBI gets confident about its working and if there are no instances of fraud, the same limit can be taken up to Rs 10,000.”
Bahl, however, cautioned that the limit should not be set at an insignificantly small amount. "It can't be some really small amount where you won't even find out whether it worked or not," he added.
RBI had adopted the two-factor authentication to ensure protection in transaction and avoid any sought of misuse.
"...whether we can create a system where we can avoid the second factor authentication so that the small transactions can go... (For) arrangement between customer liability and provider liability, we can work out something. We are discussing with banks," RBI Deputy Governor H R Khan had said in December at an industry event.