How can I make a payment online without an OTP verification?

Sick of OTPs? RBI has a new notification. You can say NO to the One Time Passwords that you need to key in every time you do an online transaction, but only for transactions less than Rs 2,000.

The idea is that the OTP is a pain. You get it by SMS. And SMS is not “deterministic” in the sense that there’s no guarantee you’ll actually get it. And then your phone’s battery may be off (and you might be trying to buy a new battery online!). Or you may be in a remote location with no mobile coverage, but some internet. And if you don’t get the SMS, you can’t finish your transaction. Plus, it’s a bit of a pain to wait for it.

So the RBI says:

We’ll allow YOU (the cardholder) to say “I don’t want OTP, dammit”

But only for transactions that cost less than Rs 2,000

And then also, it’s not smooth

Because your card network – the Mastercard/Visa/Rupay – will ask you to login with a username and password you create on their website. Then only does the payment go through.

So they’re replaced an OTP with a password, even if you did opt out

This is not so much of a difference. So instead of entering your card details and then an OTP, you just enter a login/password for each transaction at the mastercard/visa layer. To counter, banks could offer you the ability to use a password instead of an OTP. (HDFC Bank does offer it, and I really thank them for it)