Reserve Bank of India (Authentication Mechanisms for Digital Payment Transactions) Directions, 2025 have been issued
FinTech BizNews Service
Mumbai, September 26, 2025: The Reserve Bank of India (RBI) has issued Reserve Bank of India (Authentication Mechanisms for Digital Payment Transactions) Directions, 2025. These directions shall be complied with by April 01, 2026.
Sanjay Tripathy, CEO & Co-Founder BRISKPE, a cross border payments platform, has shared noteworthy viewpoint: “RBI by mandating risk-based checks in its latest directions has formalized a framework that encourages a variety of authentication mechanisms beyond just SMS-based OTPs. The specific requirement for validating an Additional Factor of Authentication (AFA) in cross-border card-not-present transactions is a critical step to increase trust and reduce risks, which will ultimately benefit both businesses and their customers. It provides a clear, uniform standard that aligns with global best practices and will strengthen India's position in the international digital payments landscape. The move will foster a more robust and compliant ecosystem, ensuring smoother and more secure cross-border transactions for all.”
