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The Reserve Bank of India (RBI) has issued a draft framework on Alternative Authentication Mechanisms for Digital Payment Transactions, aimed at enhancing the security and flexibility of digital payments.
The framework, announced following the Statement on Developmental and Regulatory Policies dated February 8, 2024, allows Payment System Operators and users to adopt alternative authentication mechanisms beyond the traditional SMS-based One-Time Passwords (OTP). While OTPs have been effective, technological advancements now offer multiple secure authentication options, which the RBI intends to facilitate through this framework.
The draft framework is designed to expand the choice of authentication factors, making digital payments safer and more convenient for users while supporting innovation in the payments ecosystem.
Stakeholders and the public are invited to submit comments or feedback on the draft framework by September 15, 2024, via email or post to the Chief General Manager-in-Charge, Department of Payment and Settlement Systems, RBI, Central Office, Mumbai.
[RBI]