Economy

Credit Cards in India will require additional security

Recently RBI seems to have sent guidelines to all banks in India that are issuing credit cards to add additional security measures for online and telephone transactions. Currently most of the online transactions using credit cards require only the card number, expiry, name, address and CVV (printed on the back of the card) –  other than address all these information are printed in the card itself. So it is easy for any shop keeper (say in a restaurant where you send your card away from your sight) to copy all these details and use it a fraudulent transaction online. Now RBI will be prescribing that from August 2009 all online credit card transactions will require in to provide additional verification data which is not visible in the card.

Certainly a welcome move from RBI. And probably a pioneering move that central banks around the world will be watching carefully to emulate.

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