Banking regulator, Reserve Bank of India has given banks extra time of one more month to set up the added security layer for mobile transactions.
It is now required of banks to set up the extra layer of security by February 1, following which a second password would be needed for any telephonic transaction.
As per the guideline, banks have to decline access to transaction if the customer does not have the One-Time Password (OTP) for automated IVR (Interactive Voice Response) services. This directive was to come into effect from January 1,2011. But banks indicated their inability to incorporate the process within such a short notice.
After discussion with top RBI officials as well as bankers, the apex bank has decided to extend the date of implementation by another month.
"The date of implementation (of additional password) has been revised to February 1, 2011, as advised by RBI," private sector bank HDFC Bank said.
The new layer has been added to protect the customer from increasing phishing scams and credit card frauds.