India's RBI mandates two-factor authentication for all digital transactions
Change
India's RBI requires two-factor authentication for all digital transactions effective April 1, mandating that each transaction include at least one dynamic element such as a one-time password, biometric verification, or device-based authentication.
Why it matters
Payment systems can no longer rely on single-factor, SMS-only verification as a sufficient control, raising the operational bar for authentication flows. Engineering, vendor-integration, and compliance work must be completed to prevent increased transaction rejections and regulatory non-compliance.
Implications
- • Retail banks' digital payments and fraud teams must implement and validate non-SMS second-factor methods in production or face increased declined transactions and compliance violations.
- • Mobile wallet and payment-app providers' engineering and compliance teams must integrate biometric or device-based authentication and update customer flows or incur transaction rejections.
Unlock the decision layer.
Go beyond headlines — see impact, exposure, and timing.
- Implications: What actually changes downstream.
- Who is affected: Which teams or operators are exposed.
- What to watch: Deadlines, triggers, and next moves.
- Real-time alerts: Know the moment a change is published.
- Ask AI: Clarify any brief instantly, in context.
14-day free trial. Full access. No credit card required.
Start free trial
Source
Topics
Regulatory Actions Compliance Financial Services Fintech & Payments