--- title: "RBI Draft Directions On AFA For Cross-Border CNP Transactions" date: 2025-02-20 author: "Asha Kiran Sharma" url: https://ksandk.com/banking/rbi-draft-afa-cross-border-on-cnp-transactions/ --- # RBI Draft Directions On AFA For Cross-Border CNP Transactions Posted On - 20 February, 2025 • By - Asha Kiran Sharma ![RBI Draft Directions On AFA For Cross-Border CNP Transactions](https://ksandk.com/wp-content/uploads/Screenshot-2025-02-20-181141.jpg) Card Not Present (**CNP**) transactions occur where card details are provided without physically presenting the card at the point of sale, while offering convenience in the age of e-commerce, CNP transactions also present unique security challenges. To safeguard such transactions, the Reserve Bank of India (**RBI**) has previously implemented security measures for domestic CNP transactions, through circulars issued in 2009[[1]](#_ftn1) and 2011.[[2]](#_ftn2) Looking ahead, the RBI’s Payments Vision 2025 emphasizes the need for a similar level of security for cross-border card transactions. Thus, on February 7, 2025, the RBI released draft directions on Additional Factor of Authentication (**AFA**) for cross-border CNP transactions.[[3]](#_ftn3) These draft directions aim to bolster the security of international online payments, reduce the incidence of fraud, and enhance trust in cross-border e-commerce. ## Key Provisions The key provisions under the directions are as follows: ![](https://ksandk.com/wp-content/uploads/image-38.png) ## Impact Analysis There are three key stakeholders at play once the directions are applicable. They are as follows: ![](https://ksandk.com/wp-content/uploads/image-37.png) This shift in security protocols is likely to have a positive impact on cross-border transactions. Strengthening payment security can help businesses expand their market presence while minimizing losses due to fraud. In turn, this would create a more stable and predictable business environment, fostering increased participation in international online commerce. ## Conclusion The proposed draft directions reinforce India’s dedication to securing international e-commerce transactions. They introduce mandatory AFA for non-recurring cross-border CNP transactions when requested by merchants or acquirers. Additionally, they require card issuers to register their BINs with card networks and implement risk-based mechanisms to manage such transactions effectively. --- [[1]](#_ftnref1) [https://www.rbi.org.in/scripts/FS_Notification.aspx?Id=4844&fn=9&Mode=0](https://www.rbi.org.in/scripts/FS_Notification.aspx?Id=4844&fn=9&Mode=0). [[2]](#_ftnref2) [https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6657&Mode=0](https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6657&Mode=0). [[3]](#_ftnref3) [https://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=4600](https://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=4600). **[King Stubb & Kasiva](https://ksandk.com/), Advocates & Attorneys** [Click Here to Get in Touch](https://ksandk.com/ksk/contact-us/) **[New Delhi](https://g.page/king-stubb-and-kasiva) | [Mumbai](https://g.page/king-stubb-kasiva-mumbai) | [Bangalore](https://g.page/king-stubb-kasiva-bangalore) | [Chennai](https://g.page/king-stubb-kasiva-chennai) | [Hyderabad](https://g.page/king-stubb-kasiva-hyderabad) | [Mangalore](https://goo.gl/maps/hUS3gL7bmBgwRnRg8) | [Pune](https://goo.gl/maps/FdXh54RE2Jh5AFLc7) | [Kochi](https://goo.gl/maps/nVtT1vZdbcy7NTiE6) Tel: [+91 11 41032969](tel:+911141032969) | Email: [info@ksandk.com](mailto:info@ksandk.com)** --- ## Office Locations - [New Delhi](https://ksandk.com/locations/top-corporate-law-firm-in-delhi/) (HQ): +91-11-41318190 | info@ksandk.com - [Mumbai](https://ksandk.com/locations/top-corporate-law-firm-in-mumbai/): 3 offices (Nariman Point, Lower Parel, Andheri) | mumbai@ksandk.com - [Bangalore](https://ksandk.com/locations/top-corporate-law-firm-in-bangalore/): bangalore@ksandk.com - [Chennai](https://ksandk.com/locations/chennai/): chennai@ksandk.com - [Hyderabad](https://ksandk.com/locations/hyderabad/): hyderabad@ksandk.com - [Pune](https://ksandk.com/locations/pune/): pune@ksandk.com - [Kochi](https://ksandk.com/locations/kochi/): kochi@ksandk.com ## Contact - [Contact Page](https://ksandk.com/contact-us/) - General: info@ksandk.com | +91-11-41318190 - WhatsApp: +91-7428567444 - [Privacy Statement](https://ksandk.com/privacy-statement/) - [Terms of Use](https://ksandk.com/terms-of-use/)