RBI/2016-17/170
DPSS.CO.PD No.1421/02.14.003/2016-17
December
02, 2016
The Chairman and Managing
Director / Chief Executive Officers
All Scheduled Commercial Banks including RRBs / Urban Co-operative Banks /
State Co-operative Banks / District Central Co-operative Banks/
Authorised Card Payment Networks / White Label ATM Operators /
Payments Banks / Small Finance Banks
Dear Madam / Sir,
Aadhaar-based Authentication for
Card Present Transactions
A reference is invited to our circular DPSS.CO.PD.No.892/02.14.003/2016-17 dated
September 29, 2016 wherein banks were advised to ensure that
all new card present acceptance infrastructure deployed with effect from
January 1, 2017 are enabled for processing payment transactions using
Aadhaar-based biometric authentication also.
2. It has been brought to our
notice that the rate of deployment of acceptance infrastructure has slowed
down owing to the mismatch between demand and supply of such
Aadhaar-enabled devices. Therefore, on a review, it has been decided to
extend the time for deployment of Aadhaar-enabled devices till June 30,
2017. However, banks may continue to make necessary arrangements, including
changes as host-end, network level and device readiness, as required to
ensure adherence to above instructions.
3. Further, it is also clarified
that the instructions contained in our circular
dated September 29, 2016 are for deployment of new card
acceptance infrastructure. As regards enablement of existing card
acceptance infrastructure for processing payment transactions using
Aadhaar-based biometric authentication, the timeline will be advised in due
course.
4. This directive is issued
under Section 10(2) read with Section 18 of Payment and Settlement Systems
Act 2007 (Act 51 of 2007).
5. Please acknowledge the
receipt of this circular.
Yours faithfully,
(Nanda S. Dave)
Chief General Manager
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