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India’s digital payments are set for a security makeover as the Reserve Bank of India’s new digital payment directions, effective from April 2026, will make banks adopt a risk-based model to authenticate transactions.
While maintaining the mandatory two-factor authentication requirement, the framework moves away from a mere one-time password (OTP) approach to a framework that customises checks based on the transaction’s level of risk.
Experts said the move, which aims to strengthen security while lowering consumer friction, is long overdue in…
