RBI is working on a new authentication method to make online transactions more secure. RBI Governor Shaktikanta Das said this while announcing the decisions taken in the MPC meeting.
Till now, whenever you do any online transaction, you receive an OTP through SMS. With this OTP you verify the transaction and the transaction is completed. This OTP method ensures that there is no error in online payment and you are not cheated. Now RBI is planning to bring an even further safety method.
RBI is working on principle based authentication framework. Through this, online transactions of customers will get additional security. RBI Governor Shaktikanta Das, while explaining about the decisions taken in the MPC meeting, also said something in this regard.
What did the governor say?
Shaktikanta Das said that in the last few years, different systems like Additional Factor of Authentication have been introduced to secure digital payments. Among these, SMS based OTP verification method has become quite popular. To increase its security, a Principal Based Authentication Framework has been proposed. RBI may issue separate instructions to explain in detail about this new method. Let us tell you that the Governor has not yet told anything in detail about this method.
Big deal regarding e-money
Shaktikanta Das said that to promote e-rupee transactions, it has been said to start a pilot project of offline transactions. If this trial is successful, then digital currency transactions will be possible even in areas where internet connectivity is either limited or nonexistent.
Let us tell you that digital rupee was started as a pilot project in December 2022. After one year, in December 2023, transactions using digital rupee had reached Rs 10 lakh.