SRINAGAR : The Reserve Bank of India has announced comprehensive new directions for digital payment authentication that will take effect from April 1, 2026, introducing alternative authentication mechanisms whilst maintaining mandatory two-factor authentication for all transactions. According to the Economic Times , the new framework will allow financial institutions to move beyond the current SMS-based one-time password (OTP) system whilst retaining it as an option. Follow Us On G -N e w s | Whatsapp

The RBI’s Authentication Mechanisms for Digital Payment Transactions Directions, 2025, specify that at least one authentication factor must be dynamically created or proven, making the proof of possession unique to each transaction. Authentication factors may includ

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