RBI Digital Payment Authentication Rules Move Beyond SMS OTP
Why in the news
With digital payments and fraud both rising, the RBI issued fresh norms on verifying transactions.
Key features
- SMS passwords cease to be the only method.
- Options: biometrics, device identity, behavioural signals, AI-driven risk-based checks.
- Technology-agnostic: entities choose flexible methods.
- Stronger safeguards for new digital users.
Implications
- Consumers: safer, smoother payments.
- Issuers: flexibility and resilience.
- Ecosystem: financial inclusion.
Exam angle
- Shift away from SMS-only OTP.
- Aims: security, trust, inclusion.