In a decisive move aimed at bolstering security within India's rapidly expanding digital payments ecosystem, the Reserve Bank of India (RBI) has today issued new guidelines making Two-Factor Authentication (2FA) mandatory for all digital payment transactions from April 1, 2026. Dubbed the Authentication Mechanisms for Digital Payment Transactions Directions, 2025, the framework introduces stricter verification norms and opens up newer, more flexible modes of authentication, while still preserving consumer convenience.
Why the Change?
Digital payments in India have surged in volume in recent years, driven by the rise of Unified Payments Interface (UPI), wallets, credit/debit cards, and o
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