RBI’s two-step verification directive for digital payment comes into effect

The Reserve Bank of India’s directive of a two-factor authentication for digital payments has come into effect from Wednesday. The move is aimed at curbing digital fraud by adding an additional layer of verification to protect account holders and prevent unauthorised transactions.

Under the Reserve Bank of India (Authentication Mechanisms for Digital Payment Transactions) Directions, 2025, all payment system providers and participants, including banks and non-bank entities, must authenticate digital payment transactions using at least two distinct authentication factors.