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.
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.
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. You can also use a software token like an Authenticator app. This app will generate a new password each time, which will expire within 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, transactions will still be impossible because you will need to be present to complete the process. The RBI says this step is designed to ensure secure and reliable digital transactions.
Let us tell you that this new rule will come into effect from April 1, 2026, hence after this date it will be mandatory to use 2FA while making digital transactions.
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