India to expand digital transaction security options
The central bank of India proposes new guidelines to allow various authentication methods for digital transactions, enhancing security and aligning with broader tech initiatives like AI infrastructure investment and biometric passports.
India’s central bank proposed new guidelines on Wednesday to allow a broader range of authentication methods for digital transactions. The Reserve Bank of India (RBI) aims to enhance security by incorporating alternatives like fingerprints, passwords, and personal identification numbers (PINs) as additional factors of authentication.
Currently, text-based one-time passwords are the primary method used for authorising digital payments in India. The RBI’s draft circular suggests introducing other options such as passphrases, card hardware, or software tokens to verify users’ identities. This move is part of a broader effort to reduce fraud and cybercrime.
The proposal aligns with India’s broader technological initiatives, including the allocation of $1.24 billion for AI infrastructure and the introduction of biometric passports. Additionally, India has mandated USB-C ports for smartphones and tablets to curb e-waste, reflecting the country’s commitment to digital and tech security, as well as environmental sustainability.
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