Reserve Bank of India (RBI) on 14 May 2015 allowed Tap And Pay without PIN for transactions up to 2000 rupees. For amounts higher than that, the customer must be given the option of contact payment and would require pin authentication.
RBI decided to relax current guidelines on the needs for additional factor authentication (AFA) for small value card present transactions only using contact-less cards.
The move is expected to hasten acceptance of tap and pay electronic payments at retail outlets, in transport services and for toll payments.
Tap and pay refers to the use of near field communication technology in payment cards where instead of the traditional swiping of the card and punching in payment details, all the customer needs to do is wave a card in front of an acceptance device for the bill to be settled.
One of the preconditions set out by RBI is that the contactless card should also incorporate the latest EMV Chip technology for enabling payment beyond 2000 rupees.
Also, Banks must give customers the option to choose to pay using the regular swipe method without using NFC irrespective of the amount involved.
In most countries where payment technology has advanced NFC cards are used for payment of metro or bus fares or in electronic toll collection.
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