RBI strengthens security in Aadhaar payment systems
The RBI is rolling out new rules from January 1 to make Aadhaar-based payment systems (AePS) safer, after reports of fraud and identity theft.
AePS lets people use their Aadhaar number for quick transactions, but recent scams pushed RBI to act.
The goal: keep your money and data protected while making sure the system stays trustworthy.
What the new rules say
Banks now have to do stricter background checks before letting operators handle AePS transactions, and they'll need to update KYC details regularly.
If an operator goes inactive for three months, fresh KYC is a must before they're back in action.
Banks also have to keep a closer eye on transactions and limit certain tech tools like APIs, all aimed at cutting down fraud and boosting confidence in digital payments.