Digital payment norms revised, two-factor nod mandatory

Mumbai: The Reserve Bank of India (RBI) on Thursday issued new rules on authentication for digital payments, giving banks the flexibility to use options such as biometrics, device-based tokens, and passphrases for verifying transactions.

However, it has made two-factor authentication (2FA) mandatory for all transactions, with at least one factor being dynamic and unique to that transaction. The rules will come into effect from April 1, 2026, with small-value transactions exempted from 2FA.