Mint Explainer | Will RBI’s two-factor authentication rule curb digital fraud?
How is this different from current practice?
Many transactions today rely on a single authentication factor, typically a PIN or an OTP. The new rule mandates two distinct layers of verification, making it harder for fraudsters to complete transactions even if one credential is compromised. For example, even if someone has access to the OTP, the transaction cannot be completed without the second factor, such as a PIN or biometric check.
