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Events / Regulatory / Reserve Bank of India Mandates 2FA
Regulatory regulatory change

Reserve Bank of India Mandates 2FA

Analysis based on 8 articles · First reported Mar 22, 2026 · Last updated Mar 29, 2026

Sentiment
30
Attention
4
Articles
8
Market Impact
General
Live prominence charts, article sentiment distribution, and event development timeline available on the Ergen Dashboard
Market Impact

The new regulations by the State Bank of India are expected to increase trust in digital payments in India, potentially boosting adoption and transaction volumes. While transaction times may slightly increase, the enhanced security measures aim to reduce fraud, which could positively impact financial institutions by reducing liability and improving customer confidence.

Financial services Information technology Banking
Event Summary

The State Bank of India has mandated two-factor authentication (2FA) for all digital payments in India, effective April 1, 2026. This change requires users to provide at least two layers of verification, such as an OTP combined with a PIN, password, or biometric authentication, for transactions including UPI, debit cards, credit cards, and mobile wallets. The move aims to combat rising online fraud cases like phishing and SIM swap scams, which have exploited vulnerabilities in OTP-based systems. The new system will also adopt a risk-based approach, applying stronger authentication for high-risk transactions. Additionally, the State Bank of India has increased accountability for banks and payment platforms, requiring them to compensate customers for fraud resulting from system failures. Similar 2FA rules are planned for international and cross-border card payments by October 2026. Experts from Easebuzz, Policybazaar, Veritas Juris, and Global Citizen Solutions generally view this as a positive step towards enhancing security and trust in India's rapidly growing digital payment ecosystem.

Entities Involved
priv
Easebuzz
Amit Kumar, CTO & Director of Easebuzz, commented on the new rules, stating that the added layer of protection is expected to significantly reduce fraud risks and encourage wider adoption of secure digital payments.
Importance 10.0 Sentiment 10.0
priv
Policybazaar
Harsh Vardhan Masta, Head of Payments at Policybazaar, noted that shifting liability to banks and fintechs will require stricter transaction processing norms and ensure swift compensation for fraud.
Importance 10.0 Sentiment 10.0
oth
Veritas Juris
Shikha Sarin, Founder at Veritas Juris, provided expert commentary on the RBI's new framework, highlighting its shift from a prescriptive OTP-based regime to a more principle-driven, risk-based standard.
Importance 10.0 Sentiment 10.0
priv
Global Citizen Solutions
Adelia Castelino, Co-founder and Managing Director at Global Citizen Solutions, viewed the RBI's guidelines as an opportunity for banks to strengthen digital trust and reduce fraud risk through biometric authentication.
Importance 10.0 Sentiment 10.0
stock
State Bank of India
Importance 0.0 Sentiment 0.0
cnt
India
Importance 0.0 Sentiment 0.0
Relationships
State Bank of India related ↔ India
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