The Reserve Bank of India (RBI) on July 31, 2024, notified Draft Framework on Alternative Authentication Mechanisms for Digital Payment Transactions.
The RBI has consistently prioritized the security of digital payments, especially through the use of the Additional Factor of Authentication (AFA). Traditionally, the digital payments ecosystem has largely relied on SMS-based One-Time Passwords (OTPs) as the AFA. While SMS-based OTPs have been effective, advancements in technology have introduced alternative authentication methods.
In response, and as outlined in the Statement on Developmental and Regulatory Policies dated February 8, 2024, the RBI has released a draft "Framework on Alternative Authentication Mechanisms for Digital Payment Transactions." This draft framework aims to provide more authentication options for Payment System Operators and users, expanding the available choices beyond the conventional OTP method.
Stakeholders are invited to submit comments or feedback on the draft framework. The deadline for submitting feedback is September 15, 2024.
[Press Release: 2024-2025/809]
