CYBERSECURITY NORMS FOR PAYMENT SERVICES

News: The Reserve Bank of India (RBI) will issue norms of cybersecurity for payment service providers (PSPs). RBI has already launched the guidelines for the banks and NBFC.

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Reason: 

• There was a series of data breaches by payment service providers including Mobikwik and payment aggregator JusPay, a top RBI official said. 

• Further, there is a domination of two or three players in the fintech-backed retail payments space. This could give rise to competitive weakness in the market, as only two apps provide about 70% of third-party services in the UPI system. 

• Consumers do not have any  control on the entire UPI itself.

• National Payments Corporation of India (NPCI) had also laid down a framework for a more even distribution of share of third-party app providers in the UPI system.