Digital Payment Security Controls

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Digital Payment Security Controls are a set of technical, operational and governance measures prescribed by the RBI to secure the end-to-end digital payment ecosystem. These controls cover everything from mobile banking apps, internet banking platforms, UPI, wallets, POS systems, cards and APIs—ensuring every transaction is secure, traceable and free from unauthorized interference.

The RBI’s 2021 directive on Digital Payment Security Controls provides a structured framework for regulated entities to manage digital risks effectively, strengthen user authentication and protect customer data. ransomware, data breaches and third-party risks.

In today’s fast-evolving digital economy, digital payment systems have become the backbone of banking and financial services. With growing adoption comes increasing risk—cyber fraud, phishing attacks, unauthorized access and data theft have made digital payment security a top priority. To protect consumers and strengthen systemic trust, the Reserve Bank of India (RBI) has issued specific guidelines to ensure robust digital payment security controls across all banking and non-banking financial institutions.

Our specialized services help banks and fintech companies implement, assess and audit these security controls in alignment with RBI expectations—ensuring safe, compliant and frictionless digital transactions.

💼 Our Services Include

  • Gap assessment against RBI’s Digital Payment Security Controls
  • Application security testing (Web, Mobile, APIs)
  • Source code reviews and SSDLC consulting
  • VAPT for payment apps and backend infrastructure
  • Policy creation, incident response planning and user awareness support
  • Audit documentation and RBI inspection readiness consulting

✅ Business Benefits

  • Strengthened protection against payment-related fraud
  • Reduced financial and legal risk from non-compliance
  • Improved audit and inspection outcomes
  • Enhanced customer trust and platform credibility
  • Faster resolution of security gaps and vulnerabilities
  • End-to-end visibility into payment security posture

📋 Regulatory References

  • RBI Circular: “Digital Payment Security Controls”, February 18, 2021
  • RBI Master Directions on IT Framework for NBFCs
  • Guidelines from NPCI, CERT-IN and IDRBT
  • PCI DSS, ISO 27001 and OWASP security standards

🧠 Key Control Areas as per RBI Guidelines

✅ Governance and Oversight

  • Establish a board-approved digital payment security policy
  • Appoint dedicated security personnel and define accountability
  • Regular review of policies, procedures and incidents by senior management

✅ Risk Assessment and Management

  • Conduct periodic risk assessments for all digital payment channels
  • Classify risks based on likelihood and impact
  • Document mitigation strategies for each identified risk

✅ Application Security

  • Perform secure software development practices (SSDLC)
  • Conduct regular vulnerability assessments and source code reviews
  • Ensure real-time threat detection and monitoring for apps and APIs

✅ User Authentication and Access Control

  • Implement robust Multi-Factor Authentication (MFA)
  • Ensure session timeout, transaction limits and real-time alerts
  • Monitor and block suspicious login attempts and devices

✅ Transaction Security

  • Encrypt data during transmission and storage
  • Implement dynamic OTPs, biometric authentication, or tokens
  • Detect anomalies such as duplicate, out-of-pattern, or high-risk transactions

✅ Mobile and Internet Banking Security

  • Secure mobile apps against reverse engineering and malware
  • Use device binding, certificate pinning and runtime protection
  • Regularly test for OWASP Mobile and Web vulnerabilities

✅ UPI, IMPS and Wallet Security

  • Implement fraud detection algorithms for instant payments
  • Monitor API interactions for abuse or tampering
  • Secure integration with NPCI systems and validate transactions in real time

✅ Card Payment Security

  • Ensure EMV compliance and secure PIN validation
  • Monitor for card cloning, skimming, or unauthorized usage
  • Maintain PCI DSS compliance for cardholder data protection

✅ Customer Awareness and Incident Reporting

  • Provide awareness campaigns on phishing, fraud prevention and safe usage
  • Set up easy and responsive customer grievance redressal mechanisms
  • Maintain 24/7 fraud reporting channels with fast escalation processes

✅ Audit and Compliance

  • Conduct annual security audits for digital payment channels
  • Review all control gaps and implement corrective actions
  • Maintain audit trails and documentation for regulator review

Related Training

Cyber Security Frameworks in Banks

IT Outsourcing/Financial Outsourcing

Information Technology Governance, Risk, Controls and Assurance Practices

Guidance note on Management of Operational Risk

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