The new year will also herald a new six-digit password for all credit card holders in India known as One-Time Password (OTP).
The move by all banks which issue credit cards was made mandatory for all credit-card transactions following massive misuse of stolen credit cards in the country. The directive was issued by the Reserve Bank of India in August as a new requirement for payment transactions.
The validity of the password is being restricted for thirty minutes to one day or for one transaction depending on the issuing bank's specification. The country's central bank has asked all the banks to decline telephone banking without a OTP.
The cardholders can get it from the bank on their registered mobile phones. State Bank of India, India's largest bank is allowing its customers to generate the OTP through a call to the helpline number or get it online or through an SMS. HDFC Bank, one of the largest private banks is also offering similar options to its customers.
Some banks have specified that even transactions like mobile currency recharge and direct-to-home connection would require OTP.
However, for online transactions OTP is not required and the usual procedure of providing CVV number with a special password is enough, said the directive.