The next time you go online and try to use your credit card to pay your bills, book movie tickets, airline tickets or even just shop, do not be surprised if you are directed to your banks website asking you to enter a password. This is part of the new initiatives implemented by the RBI in a bid to curb hackers and thieves from misusing credit card information. While skeptics have always had their doubts about online safety, this rule should add an added safety net for card holders in the country, as we continue to rush through this e-age. For those card holders who have not yet registered with their banks, they should do so immediately so as to continue using their cards online. This process can be done directly via the bank website itself. ?

Every time you want to make an online payment, you will be automatically directed to your banks website where you will be asked to enter an additional password as an extra level of authentication. One can avail of this particular password through a registration process available on the website of the respective bank. For getting registered while shopping online, you need to select the goods or services you want from a Verified by Visa/ MasterCard SecureCode online store and proceed to the payment page. There you will have to enter your card number and the online store will connect with your bank to check whether your card is enrolled for this service ?

Anextract from a notice issued by?G. Padmanabhan, Chief General Manager, RBI to all banks explains

?The use of Credit/Debit Cards has been increasing in the country.? We have been reviewing various options to enhance the security of online?card?transactions. After extensive consultations with banks/card?companies, it has been decided as under:

It would be mandatory to put in place with effect from August 01, 2009:

*?A system of providing for additional authentication/validation based on information not visible on the cards for all on-line?card?not present transactions except IVR transactions (for which separate instructions will follow).

*? A system of “Online Alerts” to the cardholder for all ‘card?not present’ transactions of the value of Rs. 5,000/ and above.

* Banks are advised to strictly adhere to the instructions and time discipline indicated in this circular. Non-adherence to the directives shall attract penalties prescribed under the Payment and Settlement Systems Act 2007 (Act 51 of 2007).

* This directive is issued under section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007).??

This will ensure that all credit cards will stop functioning online, unless registered with the bank. An extra level of authentication required by all cards for online transactions is an attempt to futher dissuade fraudsters from taking advantage of innocent card users, has been put into place and would take effect from the first of this month. Many banks have already begun implementing this procedure and those that haven?t will have to now do so.

The banking community is of the opinion that this is a step closer to fool proof online transactions and is happy with the move. However, some bankers have doubts about people?s reaction to this and fear that there maybe many unaware card holders who might ditch the online shopping process altogether.

The process while appears complicated is simple enough and will definitely provide people with additional security. With India fast moving to a more tech-savvy and internet friendly crowd, such a step is a move in the right direction and people should take note of this change and complete the necessary formalities so as to continue using their cards online.