Lok Sabha Question No. 2722 (UNSTARRED), answered on 2019-07-10
Subject: Promotion of Digital Payments
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Raksha Nikhil Khadse

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO.  2722

TO BE ANSWERED ON: 10.07.2019

## PROMOTION OF DIGITAL PAYMENTS

## 2722. SHRIMATI RAKSHA NIKHIL KHADSE:

Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY  be pleased to state:

- (a)    whether  the  Government  proposes  to  encourage  digital  payments  by  enhancing  the features  of  the  ATM  cards  and  if  so,  the  details  thereof  and  the  steps  taken  by  the Government in this regard;
- (b)  whether the Government proposes to internationalize the RuPay Card and BHIM UPI to ease remittances into the country and to help Indian travellers making payments abroad; and
- (c)  if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)

- (a):  Government has launched Debit Cards with functionality of National Common Mobility Card (NCMC), for enabling digital payment in Metros and Bus Services.  Further, steps have been  taken  for  enhancing  the  security  features  of  the  Debit/Credit  cards  for  promotion  of digital payments. Details of steps taken for security of card transactions are in Annexure.
- (b)  and  (c):    Efforts  are  being  taken  to  internationalize  the  RuPay  Card  and  BHIM  UPI as given below:
-  RBI has enabled acceptance of Discover and Diners Club Cards at ATM's and at POS terminals in India and issuance of RuPay Global EMV Chip and PIN cards to be  accepted  across  terminal  of  Discover  Financial  Services  (DFS)  network internationally.
-  RBI has enabled acceptance of Japan Credit  Bureau  (JCB) Cards on ATMs and POS terminals in India and issuance of RuPay Global Cards for acceptance through the JCB global network for ATM and POS transactions.
-  NPCI is conducting  pilot studies, for RuPay in Bhutan and BHIM UPI acceptance in Singapore.

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## Steps taken for security of card transactions

Reserve Bank of India (RBI) has issued various instructions in respect of security and risk mitigation measures related to card transactions which are as follows:

- a. Banks have been advised to provide online alerts for all card transactions [Card Present (CP)  and  Card  Not  Present  (CNP)]  (Cir.  DPSS.  CO.  PD  2224/02.14.003/2010-2011 dated March 29, 2011).
- b. RBI has also issued circulars dated September 22, 2011, February 28, 2013 and June 24, 2013  for  securing  electronic  (online  and  e-banking)  transactions  advising  banks  to introduce additional security measures as under:
3.  All  new  debit  cards  and  credit  cards  to  be  issued  only  for  domestic  usage  unless international  use  is  specifically  sought  by  the  customers.  Such  cards  enabling international usage will have to essentially be EMV Chip and PIN enabled.
4.  Banks should ensure that the terminals installed at the merchants for capturing card payments  (including  the  double  swipe  terminals  used)  should  be  certified  for  PCIDSS  (Payment  Card  Industry-Data  Security  Standards)  and  PA-DSS  (Payment Applications-Data Security Standards).
5.  Banks should ensure that all acquiring infrastructure that is currently operational on IP (Internet Protocol) based solutions are mandatorily made to go through PCI-DSS and PA-DSS  certification.  This  should  include  acquirers,  processors  /  aggregators  and large merchants.
- c. All  banks  had  been  advised  to  convert  all  existing  Magstripe  cards  issued  by  them  to EMV Chip and PIN cards (Cir. DPSS.CO.PD.No.448/02.14.003/2015-16 dated August 27, 2015).
- d. RBI has directed banks to mandatorily put in place Additional Factor of Authentication (AFA) for all CNP transactions with effect from May 1, 2012, failing which the issuer bank shall reimburse the loss to the customer further without demur (Cir. DPSS.PD.CO. No.223/02.14.003/2011-2012 dated August 04, 2011).
- e. All authorised card payment networks are permitted to offer card tokenisation services to any  token  requestor  (i.e.,  third  party  app  provider),  subject  to  certain  conditions.  All extant  instructions  of  RBI  on  safety  and  security  of  card  transactions,  Including  the mandate for Additional Factor of Authentication (AFA) / PIN entry shall be applicable for  tokenised  card  transactions  also  (Cir.  DPSS.CO.PD  No.1463/02.14.003/2018-19) dated January 08, 2019).

RBI, vide circular DPSS.CO.PD.No. / 2895 / 02.10.002 / 2015-2016 dated May 26, 2016 on 'ATMs - Security  and  Risk  Mitigation  Measures  for  Card  Present  (CP)  Transactions',  has advised the banks and White Label ATM Operators (WLAOs) to ensure that all the existing ATMs installed / operated by them are enabled for processing of EMV Chip and PIN cards. Also, all new ATMs shall necessarily be enabled for EMV Chip and PIN processing from inception. Further, in order to ensure uniformity in card payments ecosystem, banks shall also implement the above requirements at their micro-ATMs which are enabled to handle cardbased payments.

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