RBI Mandates Two-Factor Authentication for Online Payments from April 1

• New RBI rules from April 1 make Two-Factor Authentication (2FA) mandatory for all digital transactions.
• This change affects UPI, net banking, and mobile wallets, requiring two distinct steps to verify identity for online payments.
• One authentication factor must be dynamic, generating a new security code for each transaction to prevent fraud.
• Banks and fintechs must offer multiple authentication options, including OTP + PIN, Biometric + device binding, or Token-based authentication + password.
• The new system aims to curb online fraud, increase bank responsibility for security lapses, and secure cross-border transactions (effective October 1 for international payments).