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According to Reserve Bank of India guidelines, which of the following security mechanisms was made mandatory for all digital payments from 1 April 2026?
Single-factor Password Authentication
QR Code-only Verification
Two-Factor Authentication
OTP-only Verification Question ID : 4410092009190 Option 1 ID : 4410097912033 Option 2 ID : 4410097912032 Option 3 ID : 4410097912030 Option 4 ID : 4410097912031 Status : Not Answered Chosen Option : --
Two-Factor Authentication
The Reserve Bank of India (RBI) mandates Two-Factor Authentication (2FA) for all digital transactions to enhance cybersecurity and prevent unauthorized access. This mechanism requires two distinct layers of verification, such as a password and a One-Time Password (OTP), ensuring that a single point of failure cannot compromise the user's funds.
The Reserve Bank of India (RBI) mandates Two-Factor Authentication (2FA) for all digital transactions to enhance cybersecurity and prevent unauthorized access. This mechanism requires two distinct layers of verification, such as a password and a One-Time Password (OTP), ensuring that a single point of failure cannot compromise the user's funds.
The RBI was established on 1 April 1935 under the Reserve Bank of India Act, 1934, following the recommendations of the Hilton Young Commission.
2FA significantly reduces the risk of phishing and credential theft in digital financial ecosystems.
RBI categorizes 2FA as an essential security layer for all electronic payment instruments, including credit and debit cards.
This measure aligns with global cybersecurity standards to maintain consumer trust in the Digital India initiative.
RBI continuously updates its 'Master Direction on Digital Payment Security Controls' to address evolving cyber threats.
Single-factor authentication is considered highly insecure due to the risk of password leaks or brute-force attacks.
QR code-only or OTP-only verification are often components of a 2FA system but are insufficient as standalone security measures under current regulatory guidelines.
The 2026 timeline reflects the RBI's ongoing commitment to upgrading the security infrastructure of the Unified Payments Interface (UPI) and other payment rails.
C is correct тАФ Two-Factor Authentication is the mandated security protocol required by the RBI to secure digital payment transactions against unauthorized access.
Link this concept to the 'Digital India' initiative and the 'Information Technology Act, 2000' (IT Act) to understand the legal framework protecting digital transactions in India.
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