New Delhi. If you also do digital transactions indiscriminately through Google Pay, PhonePe or Net Banking, then be careful. From April 1, your way of making online payments is going to change completely. The Reserve Bank of India (RBI) has geared up to curb digital fraud and has decided to implement new strict rules. Now making payment through mobile wallet, UPI or card will not be as easy as before, because another wall of security has been erected.
Two-factor authentication: Now you will have to provide identification twice
The Reserve Bank of India has now made ‘Two-Factor Authentication’ (2FA) mandatory for all digital transactions. This simply means that now to complete any online payment, you will have to prove your identity in two different steps. Till now we used to enter the PIN on many apps only once and the payment was done, but after April 1, this will not work. According to the new guidelines of RBI, banks and fintech companies will have to provide such authentication options to customers, one of which must be ‘dynamic’. That means that code will be new every time and will be generated instantly.
How will this new security system work?
According to the new rules of RBI, now there should be at least two security factors for every digital payment transaction. For this, banks will use biometrics like password, PIN, OTP, or your fingerprint. Till now we often used the same ‘static PIN’ everywhere, which was easily stolen by hackers. But now a new real-time security code will be generated every time. Its biggest advantage is that even if a fraudster knows your password, he will not be able to withdraw money from your account without your fingerprint or the OTP received at that time.
Customers will have many security options
The good thing is that banks and card network companies will have to offer multiple authentication options to customers. Now you will be able to decide which method of security you find easiest. If you want, you can choose a combination of ‘OTP and PIN’, or you can choose the option of ‘Biometric and Device Binding’. Apart from this, the option of token based authentication and password will also be available. Due to this, the process of digital transaction will definitely take a little longer, but your money will remain completely safe.
What will be the major benefit to the common man?
Considering the way cases of online fraud and phishing attacks have increased in the country, this step of RBI is no less than a boon. Now it will be almost impossible for scammers to break into your account as two layers of security will stop them. The biggest thing is that if any fraud occurs due to the negligence of the bank or service provider, then the entire responsibility for it will now be on the bank. Not only this, these rules will also be applicable for transactions taking place abroad, however, for international payments these rules will be effective from October 1.
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