RBI for two-stage verification for online transactions

1.    RBI for two-stage verification for online transactions

i. Worried over rising number of frauds in online banking, the Reserve Bank of India (RBI) has suggested that banks introduce two-stage authentication to ensure security of transactions.

ii. The RBI report on ‘Enabling Public Key Infrastructure (PKI) in Payment System Applications’ said banks should also inform customers about risks associated with different types of online banking transaction.

iii. Internet banking applications of all banks should mandatorily create authentication environment for password-based two-factor authentication as well as PKI-based system for authentication and transaction verification in online banking transaction,” the report said.

iv. There are various PKI-enabled electronic payments systems introduced by the RBI such RTGS, NEFT, CBLO, Forex Clearing, Government Securities Clearing, and Cheque Truncation System (CTS). In volume terms, these systems contributed 25.1 per cent whereas these systems contributed 93.7 per cent share to the total payment transactions carried out in 2012-13 in value terms.

v. “The objective of an effective payment system is to ensure a safe, secure, efficient, robust and sound payment system in the country. In order to secure electronic documents and transactions and to ensure legal compliance, digital technology is used,” it said.

2.    RBI curbs banks from extending guarantees, ‘letters of comfort’ to overseas arms of firms

i. The Reserve Bank of India on Tuesday imposed restrictions on non-fund based credit facilities — guarantees, stand-by letters of credit, letters of comfort, and so on — extended by banks to Indian companies’ overseas arms.

ii. Further, the central bank disallowed repayment of rupee loans taken from the domestic banking system through external commercial borrowings (ECBs) extended by overseas branches/subsidiaries of Indian banks.

iii. The overseas arms of India companies include joint ventures, wholly-owned subsidiaries, and wholly-owned step-down subsidiaries. The RBI directed banks, including their overseas branches/subsidiaries, not to issue non-fund based credit facilities on behalf of overseas arms of Indian companies for the purpose of raising loans/advances of any kind from other entities except in connection with the ordinary course of overseas business.

Non-fund based credit

This directive has been issued as the RBI has found that banks were extending non-fund based credit on behalf of Indian companies’ overseas arms for purposes which are not connected with their business.

3.    India, Bhutan ink pact for hydropower JVs through PSUs of both countrie

i. India and Bhutan have signed an agreement in Thimphu for further developing hydro power, strengthening bilateral relations and cementing strategic relations between the two countries. 

ii. The framework, Inter-Governmental Agreement between Bhutan and India concerning development of Joint Venture Hydropower Projects through the Public Sector Undertakings of the two Governments, was signed by the Secretary Ministry of Economic Affairs Bhutan , Mr. Sonam Tshering, Secretary Ministry of Power, Government of India Mr P.K. Sinha.

iii. The Inter-Governmental agreement provides the framework for implementing four Hydro power projects totaling 2120 MW, on a Joint Venture-model between Public Sector Undertakings of the two countries.

iv. At present three hydro-electric projects (HEPs) totaling 1416 Megawatt are already operational in Bhutan and are supplying electricity to India. Three more HEPs totalling 2940 MW , are under construction, and are scheduled to be commissioned by 2018.

4.    Brazuca around the World launched by adidas on 2014 FIFA World Cup Brazil

i. The adidas has started a weekly series of online documentary-style films titled Brazuca around the World to excite football fans as the 2014 FIFA World Cup Brazil gets closer.

ii. The series of the film was launched by Adidas on its YouTube Channel on 22 April 2014. 

iii. The film has been shot via brazucam that involves six HD cameras, placed on the official ball of the 2014 FIFA World Cup in Brazil. Thebrazucam technology will allow its fan to enjoy a 360 degree view of the action.