RBI Makes Two-Factor Authentication Mandatory for All Digital Payments from April 2026

The Reserve Bank of India (RBI) has officially mandated two-factor authentication (2FA) for all digital transactions, effective April 1, 2026. This regulatory move is aimed at enhancing digital payment security and building stronger safeguards against online fraud, phishing, and cybercrime in India’s booming fintech ecosystem.

According to the RBI’s new framework, all payment service providers, fintech companies, and banking partners must integrate two-factor authentication (2FA) into their systems for domestic transactions. The decision follows a year-long review of alternate methods of additional factor authentication (AFA) proposed earlier by the central bank.

The RBI stated that the implementation of 2FA will not only ensure secure online transactions but also create a more flexible, reliable, and consumer-friendly digital payments ecosystem. By strengthening authentication processes, the central bank seeks to reinforce customer trust while supporting India’s rapid shift toward cashless payments, UPI transactions, mobile banking, and digital wallets.

This move aligns with India’s broader goal of fostering financial inclusion and digital transformation, ensuring that consumers and businesses can transact with confidence in a safe and transparent environment.