If you use a credit or a debit card for any transaction by phone, then you need a second password starting from 1 January, 2011. The Reserve Bank of India has made second password mandatory for all transactions based on interactive voice response (IVR).
The cardholder has to send an SMS to a particular number. The bank will SMS back a password to the cardholder. This password will be the second authentication, which would be required to complete the transaction.
For online transactions using credit or a debit card, compulsory second factor authentication is already in place. It was introduced by banks in August 2009.
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