Personal Finance
Mumbai - The directive issued by India's apex bank to commercial banks for checking incidents of online frauds will put a brake in the growth of e-commerce in the country, industry observers said.
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There are reportedly close to 50 million credit card holders and 300 million debit card holders in India and every month, banks have been receiving at least 2000 complaints relating to purchases made using stolen or lost credit and debit cards.
To prevent such fraudulent transactions, which are mostly perpetuated by impersonation through stolen, lost and hacked cards, the Reserve Bank of India (RBI) has suggested a number of steps to be implemented by banks, including requiring cardholders to register their cards under the "Verified by Visa" or "Master Card 3D-Secure" program before August 1, 2009 to enable cardholders to continue using their cards for future online transactions.
This is in addition to other information already required by the cardholder to submit like name, card number, expiry date and CVV (card verification value) number.
According to e-commerce players, the additional security measure i.e. the mandatory requirement for cardholders to register their cards under the "Verified by Visa" or "Master Card 3D-Secure" program before August 1, 2009 so that they can be issued personal identification number (PIN)/password to enable them to continue using their cards for future online transactions, may trigger a decline in daily online business by at least 25-30 percent.
Currently, any online purchase requires the cardholder to type in their card details including the three- or four-digit card verification value (CVV) number that appears on the back of a credit card.
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