Key Points
The Reserve Bank of India (RBI) has proposed to introduce a principle-based framework for the authentication of digital transactions..
While announcing the decisions of the Monetary Policy Committee (MPC) on February 8, 2024, RBI Governor Shaktikanta Das, said, "Over the years, the Reserve Bank has proactively facilitated introduction of various mechanisms such as Additional Factor of Authentication (AFA) for securing digital payments..
Therefore, to facilitate adoption of alternative authentication mechanisms for enhancing the security of digital payments, it is proposed to put in place a principle-based framework for authentication of such transactions...
"We laud the RBI's continuous focus on enhancing digital trust by implementing principle-based framework for authentication proposed to enhance security of digital payments..
By diversifying authentication options beyond SMS-based OTP, the framework enhances user experience without compromising on safety. Customers can now access a wider range of authentication methods, tailored to their preferences and technological capabilities," he adds.. (Your legal guide on estate planning, inheritance, will and more.) ..
