With the new pilot project, companies like Oxigen, Airtel Money, Itz Cash, and mpesa can start offering cash-out facility through their network establishments across India.
At first RBI was going to issue a credit card that fulfilled the biometric authentication requirement in India. This would have been no only expensive, but also had the potential of creating more failed transactions, according to Track.in.
However, the new RBI directive is being placed on hold because major banks were unwilling to implement biometric authentication at every POS terminal in India. Instead, RBI now wants to implement a pilot project that involves prepaid cards.
Rather than using a major bank, there can be a prepaid card facility for subscribers on the basis of biometric authentication.
“By running the pilot project on pre-paid cards, RBI is killing two birds with one stone. The pre-paid card issuers have been hankering for a ‘cash out’ facility for long. By allowing ‘cash out’ with biometric authentication, RBI has kept pre-paid issuers happy. It also ensures that these companies have a strong incentive to make biometric authentication work,” a senior banking official told ET.
With the new pilot project, companies like Oxigen, Airtel Money, Itz Cash, mpesa and others can start offering cash-out facility through their network establishments across India.
“What’s Hot” is aggregated content. PYMNTS.com claims no responsibility for the accuracy of the content published by the original source.
Advertisement: Scroll to Continue
