RBI tightens rules as ransomware attacks escalate

MUMBAI: With the Reserve Bank of India dropping the card data storage standard, it will no longer be possible for online shoppers to shop at a single click on an e-commerce site.

An increase in the incidence of ransomware attacks in the country in which computer networks exposed to the Internet have been hijacked by malware.

According to the new guidelines for payment gateways and payment mediums, platforms selling goods online will not be able to retain customers' credit card data, so customers will have to provide their 15-digit number each time.

E-tellers and payment gateways can currently maintain card details. However, due to the new standard coming into effect from January next year, this rule will be applicable for every card-based transaction.

The risk of ransomware attacks has risen sharply in recent times, RBI sources said. The RBI does not allow any online merchant to store customer debit or credit card details.

It was opposed when the Reserve Bank made two-tier authentication mandatory, but it is now being welcomed as the system has reduced irregularities.

Online merchants are keen to maintain card information to prevent time and transactions from failing.