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Beyond OTP: RBI looking for other authentication methods
The Morning Standard
|February 12, 2024
Beyond OTP: RBI looking for other authentication methods
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TO enhance the security of digital payments, the Reserve Bank of India (RBI) in its recent Monetary Policy Meeting (MPC) announced a principlebased framework for authentication of digital payment transactions and also announced a revised regulatory framework for electronic trading platforms (ETPs), among others. Experts say this will enhance security and also provide improved user experience.
RBI governor Shaktikanta Das said, "Over the years, the Reserve Bank has proactively facilitated introduction of various mechanisms such as Additional Factor of Authentication (AFA) for securing digital payments. While no particular mechanism was specified by the Reserve Bank, SMS-based OTP has become very popular." With technological advancements, however, alternative au-
thentication mechanisms have emerged in recent years. SMSbased OTP for authentication is now quite popular but experts say this is not foolproof.
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