The Reserve Bank on Friday asked all banks to put in place additional security measures for credit card transactions based on Interactive Voice Response (IVR) by January 1, 2011.
IVR allows people to access their bank or credit card information through automated responses over the phone, instead of having to speak to staff.
In an effort to enhance the security of online credit card transactions, RBI had asked all banks last year to put in place additional authentication and validation measures, except for IVR, from August 1, 2009.
Now, the central bank has decided to extend the directive to IVR transactions as well. "After extensive deliberations with the banks/card companies, it has been decided to extend this requirement of additional authentication/validation to all CNP (card not present) transactions, including IVR transactions," RBI said in a statement.
It added that banks should implement the measures for all CNP transactions with effect from January 1, 2011.
Under the rules, banks will also be required to send "Online Alerts" to customers for all transactions worth Rs 5,000 and above, as was directed last year in case of CNP transactions.
