Latest news with #OTP-based
NDTV
5 days ago
- Business
- NDTV
All About EPFO 3.0: From ATM Withdrawals To Faster Claim Settlements
In a major digital push aimed at improving accessibility and efficiency for salaried employees, the Employees' Provident Fund Organisation (EPFO) is set to roll out EPFO 3.0 in June 2025, according to a report by DD News. The platform is expected to bring several key changes to how provident fund subscribers access and manage their savings, including ATM withdrawals, auto-claim settlements, and OTP-based account updates. What to Expect from EPFO 3.0: ATM Withdrawals: In a first-of-its-kind move, subscribers may soon be able to withdraw EPF funds via ATMs, similar to a standard bank transaction. This feature is expected to go live after the approval and settlement of claims, giving users more direct access to their funds. Faster, Automated Claim Settlements: The upcoming version will include auto-claim settlement, significantly cutting down processing times and manual intervention. This is expected to speed up the transfer of funds into users' bank accounts. Digital Account Corrections: EPF account holders will soon be able to digitally update personal details such as name, date of birth, and other key information, eliminating the need for physical form submissions. OTP-Based Verification: Account updates will be made simpler through OTP-based authentication, streamlining the verification process and replacing older, form-based systems. Improved Grievance Redressal: The EPFO is also working on upgrading its grievance redressal system, aiming to address user concerns more efficiently through the new platform. Social Security Integration and Healthcare Expansion: EPFO 3.0 is part of a broader plan to create a unified social security framework. Efforts are underway to integrate central government welfare schemes such as the Atal Pension Yojana, Pradhan Mantri Jeevan Bima Yojana, and Shramik Jan Dhan Yojana into the EPFO ecosystem. In parallel, the Employees' State Insurance Corporation (ESIC) is also strengthening its healthcare offerings. Beneficiaries may soon be eligible for free treatment at hospitals under the Ayushman Bharat scheme, including both public and empanelled private facilities. Currently, ESIC provides healthcare coverage to nearly 18 crore individuals through its network of 165 hospitals. With EPFO 3.0, the government is aiming to modernise India's social security landscape by making it more accessible, integrated, and user-friendly for workers across sectors.
The Hindu
06-05-2025
- Business
- The Hindu
Digital luggage locker facility at Thiruvananthapuram Central railway station
In a significant step towards enhancing passenger convenience, the Thiruvananthapuram Division of the Southern Railway has introduced a digital luggage locker facility at the Thiruvananthapuram Central railway station. The facility, named SafeCloak, is a self-operable, digital luggage storage solution that allows passengers to securely store their bags for a desired duration. The smart digital lockers are accessible only via OTP-based mobile number verification and are continuously monitored through CCTV, ensuring maximum security and accountability. The facility will be offered at affordable rates for passengers. The rate starts from ₹60 for 6 hours for a medium box and goes up to ₹300 for 24 hours for an XL box that can store up to 10 bags, which can be used by family and group travellers. The advanced digital locker system is designed to offer travellers a secure, hassle-free, and tech-enabled way to store their luggage while on the move. The Railway Division is redefining how modern railway stations serve the needs of both tourists and business travellers. Smart digital locker and AC waiting hall are ideal solutions for day tourists and business travellers who arrive and leave on the same day, allowing them to move light and focus on work without the burden of luggage, according to the railway authorities. The key features of the facility include easy-to-use digital interface at the locker kiosk, mobile verification via OTP for secure access, multiple locker sizes, fully digital payments with instant locker access, 24x7 CCTV monitoring, and 24x7 customer support via phone and so on.
&w=3840&q=100)
Business Standard
02-05-2025
- Business
- Business Standard
RBI fines ICICI, Axis, three other banks for regulatory compliance lapses
The RBI said the banks' non-compliance involved cybersecurity, customer charges, KYC norms, and internal account mismanagement Rahul Goreja New Delhi The Reserve Bank of India on Friday said that it has imposed monetary penalties on ICICI Bank, Axis Bank, Bank of Maharashtra, IDBI Bank, and Bank of Baroda for deficiencies in regulatory compliance, with the fines going as high as Rs 98 lakh. Axis Bank faces ₹29.60 lakh penalty In its statement explaining the action against Axis Bank, RBI said that "the bank routed unauthorised or unrelated entries through certain internal/office accounts." ICICI Bank gets ₹97.80 lakh fine for multiple violations The penalty against ICICI was imposed for multiple reasons. The central bank said the bank had failed to report a cyber security incident to RBI within the stipulated timeline. It also failed to put into use a robust software for sending alerts for certain categories of accounts. In the case of credit cards, the bank did not send bills or statements to certain customers, but levied late payment charges on them nonetheless. Bank of Maharashtra and IDBI Bank slapped with ₹31.80 lakh penalty The Bank of Maharashtra has been penalised for its failure to adhere with certain regulatory requirements in respect of several deposit accounts opened using Aadhaar OTP-based e-KYC in non-face-to-face mode, the central bank said. Meanwhile, IDBI was penalised because it charged interest in excess of applicable rate of interest in certain KCC accounts. Bank of Baroda gets a ₹61.40 lakh fine For Bank of Baroda, the banking regulator said that the bank had failed to ensure that no incentive (non-cash) was paid to its staff engaged in insurance corporate agency service by an insurance company, and it also did not credit interest in certain inoperative / dormant / frozen savings deposit accounts at the prescribed intervals. The central bank said the penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.
&w=3840&q=100)
Business Standard
02-05-2025
- Business
- Business Standard
RBI imposes penalty on ICICI, Axis, BoM, IDBI, BoB for violating norms
The Reserve Bank of India (RBI) on Friday imposed monetary penalties on ICICI Bank, Axis Bank, Bank of Maharashtra, IDBI Bank, and Bank of Baroda for violating regulatory norms. ICICI Bank has been directed to pay ₹97.80 lakh after the private sector lender was found to have failed to report a cybersecurity incident within the stipulated time, did not implement robust software for generating alerts on certain accounts, and charged late payment fees to customers despite not sending them credit card bills or statements. Axis Bank was penalised ₹29.60 lakh for routing unauthorised or unrelated entries through certain internal or office accounts. State-owned Bank of Baroda was fined ₹61.40 lakh for two violations: failure to ensure that no non-cash incentive was paid to its staff engaged in insurance corporate agency services by an insurance company, and failure to credit interest to certain inoperative, dormant, or frozen savings deposit accounts at prescribed intervals. Another public sector lender, Bank of Maharashtra, was asked to pay ₹31.80 lakh for not adhering to regulatory requirements concerning deposit accounts opened using Aadhaar OTP-based e-KYC in a non-face-to-face mode. IDBI Bank was also fined ₹31.80 lakh after it was found to have charged interest in excess of the applicable rate on certain Kisan Credit Card (KCC) accounts.
Time of India
23-04-2025
- Business
- Time of India
Lenders need OTP consent for KYC data access
The Central KYC Registry will mandate OTP-based consent for sharing customer data from May 9, 2025, adding a security layer to prevent misuse. While enhancing safety, this move could disrupt digital lending and onboarding processes due to infrastructure gaps, short implementation timelines, and reliance on registered mobile numbers for OTP delivery. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The Central KYC (know your customer) Records Registry (CKYCRR) has made consent through OTP (one-time password) compulsory for sharing personally identifiable consumer data, adding an extra layer of safety against financial comes on the back of the government wanting banks to use the C-KYC registry as the primary data source to authenticate a customer.'There was a two-day meeting between finance ministry officials and banks, where we were told to rely on C-KYC as the primary data source and also refrain from asking KYC data repeatedly from customers where the data matches with C-KYC records,' said a senior banker with a private sector lender who spoke on the condition of with the OTP leg being introduced, government officials intend to ensure that the C-KYC registry becomes a reliable platform for data will require every request by a financial institution to download KYC data to be approved by the customer through an OTP. While this is seen as an important safety measure that would encourage wider acceptance of the C-KYC database, financial services providers say this could create hurdles in the smooth flow of information, onboarding customers and providing services. The May 9 deadline to introduce this requirement is also very short, they per the current workflow, the customer only gets an intimation from the registry via SMS, informing that the data has been sought. This OTP requirement adds a second layer of consent mechanism for banks, mutual fund companies and others who typically use the C-KYC registry for customer identification. Digital lending is one of the largest use-cases of C-KYC; this will have a major impact on that sector,' said the founder of a digital lending startup on the condition of registry, under the Central Registry for Securitisation Asset Reconstruction and Security Interest of India (Cersai), runs the centralised KYC (know your customer) database for all major financial sectors of the country. As of September 2024, it held financial information of around 940 million customers.'For each download request from reporting entities (REs), CKYCRR shall trigger an OTP to the mobile number registered in the KYC record and the download response will be provided to the RE only after the OTP validation is successful,' the registry said in a letter dated April 4. ET has seen a copy of the industry insiders agreed that the process will make the data flow stronger, they flagged implementation issues among other challenges.'As of now there is no page built which can capture an OTP, so banks or NBFCs will now have to build a webpage and integrate it within the application process where OTP can be put in by the customer,' said a top executive at a fintech startup.'Secondly this would mean that whenever data is sought, the customer will have to be available for the OTP, else the KYC process will fail,' he are prone to delivery failure and in many cases customers might not be using the same number for application and one registered with many cases financial institutions take application forms from customers and process the KYC later in the backend, thereby making the front-end application process simple.'This will bring in one more leg of complexity, it will also impact digital lending, especially co-lending which is built on customer checks being done in the background,' said the founder cited major concern raised by the fintech industry is around the deadline for the implementation of the update.'Reporting entities are requested to take note of the above changes and prepare their systems for the same within the stipulated time frame. The effective go live date for this change is May 9, 2025, 8pm onwards,' the letter registry said the older version of the platform will stop functioning from May 31.
