The Reserve Bank of India (RBI) on Monday selected HDFC Bank and Precision Biometric India for the test phase of the retail payments cohort under its regulatory sandbox, according to a press release.
HDFC Bank, in partnership with Swedish firm Crunchfish, has offered an offline retail payments solution which provides the capability for the customer and merchants to be able to pay and receive payments in the offline mode. The solution aims to boost the adoption of digital payments in areas of no or low network by enabling transactions without the need to have a network connection.
Secondly, Precision Biometric’s product enables biometric tokens which can be used for secure password-less authentication and additional factor authentication (AFA), instead of a one-time password (OTP), to access mobile banking. The solution combines public key infrastructure and biometrics to enhance security and user experience in the digital payments space.
The central bank had announced the opening of the ‘on tap’ application facility for the retail payments cohort in 2021. The RBI had allowed on-tap applications for closed themes to make upgrades to existing technology.
“Further, based on the experience gained from the first and second cohorts and the feedback from stakeholders, the ‘enabling framework for regulatory sandbox’ has been updated to include ‘on tap’ application facility for themes of closed cohorts. Accordingly, the theme ‘retail payments’ is now open for application,” the RBI had said earlier.