RBI releases draft rules for Aadhar based payment operators to avert frauds

The Reserve Bank on Wednesday came out with draft rules on the due diligence to be carried out for Aadhar-enabled Payment System (AePS) touchpoint operators by lenders, in order to prevent frauds.

The proposals focus on streamlining the process for onboarding of AePS touchpoint operators and on-going due diligence, as per an official statement on the central bank website.

RBI has proposed that an acquiring bank shall carry out due diligence of all AePS touchpoint operators onboarded by it and also carry out updation of KYC (Know Your Customer) in cases where an AePS touchpoint operator has not performed any financial transaction for a continuous period of six months.

It also asks the NPCI (National Payments Corporation of India) and acquiring banks to ensure that any AePS touchpoint operator is onboarded only by one acquiring bank.

On the ongoing due diligence front, it asks for transaction limits to be set for AePS touchpoint operators based on their risk profile and transactions