Whether your phone is stolen, SIM is changed, or you receive an OTP, your money will be safe; RBI has made all the necessary arrangements

The RBI has decided to move beyond SMS-based one-time passwords (OTPs) for online transactions. Transferring money will now require a password (Dynamic 2-factor authentication) along with the OTP. This system will be effective from April 1, 2026.

The news we're about to share is sure to make your heart leap. A major change is about to take place in the digital transaction process. The RBI has introduced a system for digital transactions that will curb fraud and scams. Digital transactions will no longer be limited to OTPs. The level of safety is about to be raised. The Reserve Bank is introducing two-factor authentication for transactions. All is well, but knowing the date of implementation of this news may dampen your joy for a few months.

The central bank has decided to move beyond SMS-based one-time passwords (OTPs) for online transactions. Transferring money will now require a password along with the OTP. This system will come into effect on April 1, 2026. Find out what it entails.

Starting April 1, 2026, whenever you make a digital transaction, you'll need to use another security protocol in addition to the OTP received via SMS. In tech parlance, this is called Two-Factor Authentication, or 2FA. You've probably used it when logging into Gmail.

This means that when you enter your Gmail password, the process isn't complete. A prompt appears on your other device, asking if you're the one logging in. You must click OK on the message displayed on the screen and match the code. If Gmail isn't logged in on the other device, you'll need to obtain a one-time password from an app like Authenticator.

This is just one example, as there are other methods of 2FA. A similar approach will now be used for transactions. Along with the OTP, users will now need to enter their phone password or their thumbprint (biometrics). A software token can also be used. Don't be intimidated by the long name, as this is an app-based feature. Like Authenticator, it generates a new password each time, which expires within a few minutes.Now, it's no secret that there's no safer password than a thumbprint, fingerprint, or face scan. This means that even if your phone is stolen or a SIM card is involved in fraud, the transaction will still be blocked. Your physical presence will be required to complete the process.

That's it. Start marking your attendance from April 1, 2026.

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