The new year is bringing with it new security features to protect the customer from phishing scams. Starting from January 1, 2011 every mobile phone transaction using cebit or credit card will require a second password. It has been mandated by banking regulator Reserve Bank of India that all transactions based on interactive voice response (IVR) will need a second password.
"It is very important for security of the customers and it will also reduce cases of frauds," said Suresh Sethi, group president, Yes Bank.
Under the new process, the credit/debit card holder will first have to send a SMS to a particular number following which a password will be sent by the bank to the customer. This password will act as the authentication needed for the transaction to get completed.
"We are going to introduce a dynamic password system for mobile banking , where a credit and a debit card holder will be given a new password for every new transaction," a Bank of Baroda official on condition of anonymity.