In a move that will make it easier for cab aggregators like Uber and Ola and other online merchants to accept cards, the RBI has relaxed two-factor authentication for online payments below Rs 2,000.
The RBI's insistence on a second factor authentication (in the form of a one-time password, or OTP) had prompted cab aggregators to tie up with digital wallets like Paytm. While customers can even now pay by card, they need to wait for a text message containing the OTP before concluding the transaction.In future, if they register with the merchant, they can complete the payment by entering a password authenticated by the card network.