RBI: Big news for digital transactors. The Reserve Bank of India (RBI) is implementing two-factor authentication (2FA) from April 1, 2026. This means that online transactions will now require additional security methods, not just SMS-based OTPs.
RBI: Big news for digital transaction users. The Reserve Bank of India (RBI) is implementing Two-Factor Authentication (2FA) from April 1, 2026. This means that online transactions will now require additional security methods, not just SMS-based OTPs.
How will it work?
Now, when you make a digital transaction, you’ll need to use security protocols like a password, biometrics, or face scan in addition to an OTP. Software tokens like the Authenticator app can also be used. This app will generate a new password each time, which will expire in a few minutes.
Why is it important?
According to experts, this new system will reduce online fraud and cheating. Even if your phone is stolen or your SIM is compromised, the transaction will still be impossible because you will need to be present to complete the process. Meanwhile, the RBI says this step has been taken to ensure secure and reliable digital transactions.
This new rule will come into effect on April 1, 2026, so using 2FA will be mandatory for digital transactions after that date.
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