RBI proposes new rules of two-factor authentication for payments safety

The Reserve Bank of India (RBI) has introduced a new framework to improve security of digital payments through alternative authentication mechanisms. The initiative is part of RBI’s ongoing commitment to safeguard digital transactions, particularly in the wake of rising cyber threats and the increasing sophistication of fraud techniques.

“The Reserve Bank of India has prioritised security of digital payments, in particular the requirement of Additional Factor of Authentication (AFA) for making payments. No specific factor was mandated for authentication, but the digital payments ecosystem has primarily adopted SMS-based OTP as AFA.