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The Reserve Bank of India’s recent measures to strengthen the Aadhaar Enabled Payment System (#AePS) are a significant leap forward in enhancing financial security and inclusion. By streamlining the onboarding process and enforcing stringent due diligence for AePS Touchpoint Operators, the Reserve Bank of India (RBI) is taking crucial steps to reduce fraud and protect customers from identity theft. The RBI’s initiative to set transaction limits based on the risk profile of each operator further ensures a secure transaction environment. Additionally, if an operator hasn’t conducted a single financial transaction for six months, their KYC must be updated. Ongoing monitoring of AePS touchpoint operators by acquiring banks is also essential to maintain system integrity. I believe these measures will restore trust in AePS, enabling millions of Indians to access reliable and secure financial services. At Spice Money, we are committed to aligning with the RBI’s mission. We have introduced trusted device authentication, geo-fencing, and real-time fraud monitoring to enhance the safety of AePS ecosystem. https://lnkd.in/dUPeaBHR Ramesh Venkataraman Venkatram Jayanthy Rashmi Aggarwal CA. SUNIL KAPOOR MRUTYUNJAY MAHAPATRA Ram Rastogi 🇮🇳 Rohit Ahuja Harsh Mittal sameer nagpal Usha Murali Kuldeep Pawar Atul Tiwari #FinancialInclusion #RuralFinance #Fintech #SpiceMoney #DigitalPayments #RuralFintech #NewIndia #EmergingIndia

The Reserve Bank of India (RBI) has released guidelines for the Aadhaar Enabled Payment System (AePS) to prevent fraud and improve security: A. Single acquiring bank. Each AePS touchpoint operator can only be onboarded by one acquiring bank. This is to simplify oversight and ensure accountability. B. KYC update.Operators who have not performed any financial transactions for six months must update their KYC (Know Your Customer) details before resuming operations. C. Transaction limits.Transaction limits for AePS touchpoint operators will be set based on their risk profile. D. Transaction consistency.AePS transactions must be consistent with the operator's location of operation and risk profile. E. Continuous monitoring. Acquiring banks must continuously monitor the activities of AePS touchpoint operators. Read more at CO.DPSS.POLC.No. S / 02-01-001 / 2024-2025

*Frozen & Inactive Bank Accounts* Go to 🏠 rbicompliance.com 1. 👁️🗨️ The banks are advised by the RBI to take necessary steps urgently to bring down the number of inoperative/frozen accounts and make the process of activation of such accounts smoother and hassle free, including by enabling seamless updation of #KYC through mobile/internet banking, non-home branches, Video Customer Identification Process, etc. While the accounts of beneficiaries of various Central/State government schemes like DBT/EBT etc., are required to be segregated to facilitate uninterrupted credit of such DBT/EBT amounts in their accounts, instances have been observed where the accounts of such beneficiaries have been frozen due to other factors such as pending updation/ periodic updation of KYC. *Since these accounts mostly pertain to the people from the underprivileged sections of the society,* the banks may facilitate the process of activation of accounts by taking an empathetic view in such cases. The banks may also organise special campaigns for facilitating activation of inoperative/ frozen accounts. Besides, the banks may also facilitate Aadhaar updation for customers through the branches providing Aadhaar related services. 2. 👁️🗨️ The progress in reduction of inoperative/ frozen accounts and the special efforts made by the banks in this regard, may be monitored by the Customer Service Committee (CSC) of the Board. In addition, the banks are also advised to report the same on a quarterly basis to the respective Senior Supervisory Manager (SSM) through the #DAKSHportal, starting from the quarter ending December 31, 2024. Excerpt from the RBI circular - RBI/2024-25/91 DoS.CO.PPG.SEC.12/11.01.005/2024-25 dated December 02, 2024. Cybercrime 🪀 https://lnkd.in/dA8swGJ5 #FrozenBankAccount #KYCproblem #RBIcompliance #DormantAccount #OZGiAN #AccountFreeze

🚀 Important Update from RBI! 🚀 The RBI has issued a draft guideline aimed at bolstering the security and reliability of the Aadhaar Enabled Payment System (AePS). This initiative addresses recent fraud instances by enhancing the due diligence process for AePS touchpoint operators, akin to the scrutiny other merchants undergo. Key highlights include: 🔹 Comprehensive due diligence during the onboarding of AePS touchpoint operators, aligned with KYC guidelines. 🔹 Mandatory KYC updates for operators inactive for over six months. 🔹 Ensuring each operator is onboarded by only one acquiring bank. 🔹 Continuous monitoring and setting transaction limits based on the operator's risk profile and operational location. This move not only fortifies the system against fraud but also aligns AePS touchpoint operators with the stringent standards applied to other merchants. At Signzy, we're ready to support this transition. Our advanced fraud transaction monitoring solution ensures seamless KYC updates and real-time surveillance, helping financial institutions stay compliant and secure. Stay ahead with security and compliance! 💪 #RBI #AePS #FinTech #FraudPrevention #Signzy #FinancialInclusion #KYC

The bulk of cash-in cash-out (CICO) operators across the country rely on Aadhaar enabled Payments System or AePS for enabling transactions. In response to concerns of fraud perpetrated over AePS, on 31st July 2024, RBI issued (draft) directions to all banks and to the NPCI for onboarding and ongoing due diligence of AEPS touchpoint operators. This is very welcome. However, the RBI has also reiterated an older 2010 prohibition disallowing CSPs from offering services of multiple acquiring banks at his/her location. Our field research indicates that this could result in loss of convenience for the last mile cash-reliant customer. Banks' server failure/downtime is a recurring issue for AePS - As a workaround, CSPs acquire licenses from multiple providers at a time and use them when a particular bank server is down. This 'multi-homing' practice that has been observed by our researchers on the ground for many years now and has been corroborated by other stakeholders we have spoken to. By multi-homing, CSPs ensure continuous availability of AePS withdrawal services to customers who approach them. The prohibition may help prevent organised fraud, but for CSPs who genuinely want to service customers and make a viable business of it, they can quite easily find a workaround to this rule - after all, it's in their interests to maintain a reputable, reliable & sustainable business. We humbly submit that the RBI may consider alternative approaches - Non-exclusivity may be enabled by requiring banks and the NPCI to adopt a graded, risk-based approach. Operators who have been regularly active, have a long history of undertaking CICO transactions in the exact location, operators who do not appear in the NPCI blacklist, who do not have a history of customer complaints, can be assessed for this permission, by the acquiring banks as well as by NPCI itself, and network managers, depending on where the data for each layer rests. Those CSPs with higher risk score may be disallowed from accessing the AePS servers through any bank other than the one which shows more prominent activity for. The score can be updated on a convenient cadence to allow for genuine operators to expand their business and customer-convenience offerings. Can we prioritise convenience for the last-mile consumer and use technology fully to solve for monitoring and safety? - perhaps there is a DPI to be built? Seeking comments and feedback Dilip Modi sameer nagpal Reserve Bank of India (RBI) National Payments Corporation Of India (NPCI) Ram Rastogi 🇮🇳 Kuldeep Pawar Spice Money Sub-K IMPACT Solutions Ltd Sasidhar Thumuluri BUSINESS CORRESPONDENT FEDERATION OF INDIA #uninterruptedCICO #customerconvenience #customerservice We submitted our response to the RBI, available at https://lnkd.in/dNfKmMGs Dvara Research

The ongoing challenges with server downtime in AePS highlight the critical need for flexibility and innovation in service delivery. CSPs adopting a multi-homing strategy is a testament to their commitment to ensuring uninterrupted services for customers, even in the face of recurring technical issues. While prohibitions may curb fraud, they also risk stifling genuine operators who prioritize reliable and sustainable business practices. A more nuanced approach, such as allowing non-exclusivity with a graded, risk-based system, could be a win-win solution. By assessing CSPs based on their activity history, risk scores, and reputation, we can create a system that rewards trustworthiness while keeping customers’ needs front and center. Leveraging technology to monitor and ensure safety could indeed be a game-changer—perhaps even paving the way for a more robust DPI framework to further streamline this space. Ultimately, it’s about finding a balance between security and convenience, especially for last-mile consumers who rely on these services the most.Deepti George Dilip Modi Ram Rastogi 🇮🇳 Sunil Kulkarni Sugandh Saxena sameer nagpal Usha Murali Harsh Mittal Atul Tiwari CA. SUNIL KAPOOR National Payments Corporation Of India (NPCI) Business Correspondent Federation of India (BCFI)Praveen Kumar #FintechInnovation #CSPSolutions #AePS #FinancialInclusion #DigitalPayments #CustomerFirst #RiskManagement

The Reserve Bank of India (RBI) has released guidelines for the Aadhaar Enabled Payment System (AePS) to prevent fraud and improve security: A. Single acquiring bank. - Each AePS touchpoint operator can only be onboarded by one acquiring bank. This is to simplify oversight and ensure accountability. B. KYC update.- Operators who have not performed any financial transactions for six months must update their KYC (Know Your Customer) details before resuming operations. C. Transaction limits.- Transaction limits for AePS touchpoint operators will be set based on their risk profile. D. Transaction consistency.- AePS transactions must be consistent with the operator's location of operation and risk profile. E. Continuous monitoring- Acquiring banks must continuously monitor the activities of AePS touchpoint operators.

In view of the alarming rise in #FinancialCrimes, as highlighted by the National Payments Corporation Of India (NPCI) chairman at the #GlobalFintechFest, NPCI is taking a proactive stance to curb the growing threat landscape. With the new initiative from #NPCI to identify mule accounts in payment system data, #banks are being urged to strengthen customer onboarding and transaction monitoring systems. At BANKiQ, we echo this commitment by providing advanced next-gen #FraudRiskComplianceManagement solutions that include Customer onboarding risk scoring and true real-time #FraudPrevention outlook, thus ensuring the security and integrity of the digital payment ecosystem. https://lnkd.in/g8-HSNUr

Fighting Mule accounts, Scams, Frauds, Account take over, we would like to express our thanks and gratitude to IBS Intelligence for the recognition and our clients for trusting us as we strive each day to combat #frauds and secure #transactions in #Realtime at #scale in the ever-growing Indian #financial ecosystem. As fraud typologies change at the speed of light, Drona Pay leverages its experience and #newage #frm and #aml platforms to drive excellence in #fraudprevention and #riskmitigation for payments and lending. #banks #paymentprocessors #cardissuers #fintech #technology #analysts https://lnkd.in/dnCvFZyu

#payments | #RBI : Reserve Bank of India (RBI) has issued Draft Guidelines for Aadhaar Enabled Payment System (AePS) – Due Diligence of Touchpoint Operators. As part of enhancing the robustness of Aadhaar Enabled Payment System (AePS), it was announced in the Statement on Developmental and Regulatory Policies dated February 08, 2024, that the onboarding process of AePS Touchpoint Operators will be streamlined. In recent times, there have been instances of frauds perpetuated through AePS due to identity theft or compromise of customer credentials. To protect bank customers from such #frauds, and to maintain trust and confidence in the safety and #security of the system, it has been considered necessary to enhance the robustness of AePS. Accordingly, the Reserve Bank of India today released the draft directions on Due Diligence of AePS Touchpoint Operators.