Reserve Bank of India (RBI). (Image: DC)
Mumbai: With a rising number of frauds taking place through Aadhaar-enabled payment system (AePS) due to identity theft or compromise of customer credentials, the Reserve Bank of India (RBI) on Wednesday released draft directions for due diligence of AePS touchpoint operators.
AePS is a payment system operated by National Payment Corporation of India (NPCI) that facilitates interoperable financial transactions through the business correspondent (BC) or bank mitra of any bank, using the Aadhaar authentication.
For onboarding AePs touchpoint operators, RBI says the bank shall carry out due diligence of all AePS touchpoint operators onboarded by it, in accordance with the customer due diligence procedure for individuals
The acquiring bank shall carry out updation of KYC in cases where an AePS touchpoint operator has not performed any financial transaction for a continuous period of six months, before enabling him or her to transact further. NPCI and acquiring banks shall ensure that any AePS touchpoint operator is onboarded only by one acquiring bank," RBI says.
Further, the central bank asks the acquiring bank to monitor the activities of AePS touchpoint operators on an ongoing basis and set operational parameters. It includes setting up transaction limits for AePS touchpoint operators based on their risk profile and ensuring that the transactions are consistent with the location of operation and risk profile of the AePS touchpoint operator.
( Source : Deccan Chronicle )
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