RBI Mandates Two-Factor Authentication for Digital Payments from April 1, 2026

• RBI introduces new rules making Two-Factor Authentication (2FA) mandatory for all digital transactions from April 1, 2026.
• The new system requires at least one 'dynamic factor' like OTP or real-time verification, enhancing security beyond simple OTPs.
• Aimed at combating rising digital fraud, phishing, and unauthorized transactions in India's growing digital payment landscape.
• Benefits include increased security for customers, reduced risk for merchants, and higher accountability for banks and payment companies.
• Companies have flexibility in choosing security methods, including biometrics, device checks, and tokenization, with risk-based processing for transactions.