The Reserve Bank of India governor Shaktikanta Das while announcing additional measures during his MPC statement today said that the RBI proposed to introduce a principle-based framework for authentication of digital payments.
Governor Das said that OTP has become a popular additional factor of authentication (AFA) and that the MPC proposed to put in placed a principle-based framework for authentication of digital payments.
“Over the years, the Reserve Bank has prioritised security of digital payments, in particular the requirement of Additional Factor of Authentication (AFA). Though RBI has not prescribed any particular AFA, the payments ecosystem has largely adopted
SMS-based One Time Password (OTP),” said the Apex bank governor.
“With innovations in technology, alternative authentication mechanisms have emerged in recent years,” he stated.
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The Central Bank governor thus added that to facilitate the use of such mechanisms for digital security, the RBI proposed to adopt a principle-based framework for authentication of digital payment transactions.
He further said that more instructions in this regard will be issued separately.
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(This is a developing story, more details will be added.)