Security Rule Blasted As “Biggest Deterrent” Yet To Indian E-Commerce
Written by Fred J. AunJuly 23rd, 2009
A new online security mandate by India's central bank stands to hamstring India's E-Commerce industry, already struggling due to "recurring down-time issues with payment gateways," and other problems, said an industry group. Beginning Aug. 1, The Reserve Bank of India (RBI) is requiring all online credit and debit card transactions to include an extra level of authentication in addition to the user name, card number, card expiration date and card verification value (CVV). RBI is mandating that, before an online sale worth more than $102 American (5,000 Indian rupees) can be completed, the buyer must provide a piece of personal information not included on the payment card.
The mandate is being criticized by the Internet & Mobile Association of India (IMAI), which issued a statement asserting the measure will do little to prevent online fraud, since it will pertain only to payment cards originating in India. What it might do more effectively is make life hard for India's online retailers, said the group. "India is in an evolutionary stage in E-Commerce and this RBI directive may end up being the biggest deterrent to E-Commerce in the country, rather than an enabler," said the IMAI statement.
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I have strong reservations about the 'individual' certification and posting of that information for merchants. Can you imagine the potential employee poaching that might occur? The implications when competitors can look up how many are certified with each of their competitors? 
-Christine
