On Monday, several banks and financial technology firms reported transaction failures due to delays in receiving one-time passwords.
Contents
Delayed OTPs & Failed Payments
So far, the banks and digital payments companies are trying to circumvent issues in the delivery of time-critical OTPs to approve transactions.
On the other hand, both customers and services dependent on OTPs have complained about delayed responses and failed payments.
Why Did This Happen?
This all caused by the telecom companies in India as they have implemented a digital ledger system to scrub data in SMSes.
It was meant to block the fraudulent messages which are being delivered to individual users.
Although as a backdrop, the technology caused unexpected hiccups for bank customers on Monday, according to a senior banker,.
Only about 25-30% of the OTPs sent to customers are being delivered, in case of large banks such as Axis Bank Ltd. according to the sources.
What About The Solution?
To face the situation, the banks have been trying to manage the problem by allowing other modes of dynamic password deliveries such as emails or phonebanking.
They also use other modes of identification such as using the customer identification numbers to approve transactions.
In case of India’s largest private lender, HDFC Bank, it has managed to get its OTP services back on track but is still working on the delivery of other bank SMSes.
But the services across the board faced a problem, according to the chief executive officer of a digital lending firm.
So far, the companies had been given enough time to adhere to the requirements for quicker approval and delivery of messages through the distributed ledger technology.
It seems that some companies, including banks, may not have fully complied with the requirements of the new system, causing delays, as per the information given by the senior banker.
Although, since the entire system is facing these issues then the problem is likely deeper.
Private Sector Bank Affected The Most
The bank is expecting that it would take 24-48 hours to analyze the root cause of this problem.
It is noteworthy here that the public sector lenders are reporting fewer complaints compared to their private-sector peers.
According to the managing director and chief executive of Union Bank of India, Rajkiran Rai G “The bank has not faced a major issue regarding this and the complaints are being dealt with by the respective department. It is under control for the bank,”.
PR Rajagopal, executive director of Bank of India, said the lender had alternative methods of approving transactions, which has meant that customers need not wait for OTPs.
Further, he added, “We have a separate transaction password and a two-factor authentication via our StarToken security service because of which, the issue was not so much at our bank,”.
Comments are closed, but trackbacks and pingbacks are open.