India's RBI mandates two-factor authentication for all digital payments
Change
India's RBI required, effective April 1, that all digital transactions use two-factor authentication with at least one dynamic element such as a one-time password, biometric verification, or device-based authentication.
Why it matters
Single-factor SMS-based verification will no longer meet compliance and payment flows relying only on static or single-step checks must be upgraded. Payment platforms must adopt risk-based, adaptive checks and integrate support for dynamic secondary authentication methods.
Implications
- • Mobile wallets and payment aggregators' engineering teams must update checkout flows to capture and verify a dynamic second factor before completing transactions.
- • Card issuers' and acquirers' transaction risk teams must implement Additional Factor of Authentication for card-not-present cross-border transactions and adjust authorization routing to enforce compliance.
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