Mobile one-time passwords (OTPs) may be replaced with new technologies in India to curb digital scams. The RBI aims to replace SMS-based OTP transactions with smartphone authentication apps or biometric sensors. This move is meant to balance user security with accessibility.
Mobile one-time passwords (OTPs) may be replaced with new technologies in India to curb digital scams. Fraudsters exploit OTPs for digital payment verification. The RBI wants to prevent SIM switching and device surveillance by using authentication software or biometric sensors on cellphones.
To improve security and payment control, the RBI will remove SMS-based OTP transactions. This would hinder hackers’ security bypasses.
X (previously Twitter) and others have migrated from SMS-based verification to authentication applications for security. The RBI may use MPIN like UPI payments to address security concerns.
Transitioning from OTPs to authentication applications is difficult, especially for feature phone users without app support. The RBI must provide accessibility for all consumers, not only smartphone users.
What’s next?
Although the timetable and execution details are unknown, a security change is needed. The RBI seeks a solution that balances user security and accessibility.
Due to regulatory violations, RBI has ordered Paytm Payments Bank to suspend taking new deposits or top-ups in client accounts, wallets, and FASTags after February 29.
According to a recent study, PhonePe, Google Pay, and NPCI’s BHIM app saw a boost in Google Play downloads after the RBI’s directive.
Conclusion
Mobile one-time passwords (OTPs) may be replaced with new technologies in India to curb digital scams. The RBI aims to remove SMS-based OTP transactions and use authentication apps or biometric sensors on cellphones to avoid SIM swapping and surveillance. Multi-Factor Authentication (MPIN) like UPI payments could be used. The RBI must provide accessibility for all consumers, not only smartphone users. Paytm Payments Bank needs to stop taking deposits and top-ups.
