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Hassan Shittu
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Hassan Shittu
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India Reserve Bank of India (RBI) has issued a sweeping of new rules for tightening authentication standards for digital payments, in an effort to limit the growing fraud in this industry.
Instructions, Released on September 25, 2025, As part of authentication mechanisms for digital payment transactions, 2025, mandate stronger safety protocols across all domestic digital transactions.
RBI orders dynamic authentication for all digital payments by April 2026
All providers of payment system, including banks and non -banking entities, are obliged to comply with the rules of up to 1 April 2026.
The measures build on a long -term two -factor verification standard, but continue to go by requireing at least one dynamic verification factor for all digital transactions, except for payments with the presence of cards.
This means that credentials, such as SMS (OTP), biometric data or hardware tokens, must be unique for each transaction, preventing reuse or compromise.
RBI said the framework is designed to help the ecosystem to adapt new technologies while maintaining consumer protection and market integrity. The instructions also expand the guarantees for cross -border transactions using cards issued in India.
From October 1, 2026, card publishers will be required to verify the unsurpassed cross-border transactions “card-bez presence” and introduce controls based on risks for all these payments in accordance with fraud standards.
Issuers will be responsible for ensuring the robustness of authentication systems. In cases where losses occur due to non -compliance, issuers must fully compensate for affected customers.
RBI has also learned that all authentication mechanisms must comply with the provisions of the Act on Digital Personal Data Protection 2023.
The framework emphasizes interoperability and requires system providers to ensure that tokenization and authentication services are accessible across devices, applications and storage mechanisms. This open access approach is expected to standardize security on the market for rapidly developing payments.
In addition, RBI has encouraged issuers to accept the approach to the risk -based verification. Transactions can be assessed on the basis of behavioral and contextual parameters such as user location, equipment attributes and historical expenditure formulas.
High risk transactions could face other layers of verification, with a digilecker designed as a platform for the notification and confirmation of the customer.
While new instructions primarily cover domestic payments, they also determine the timeline for cross -border compliance with regulations, which requires that by October 2026 Imiters (storage tanks) with global card networks register.
RBI has described the rules as a milestone in an effort to solve the rising risks in digital transactions and noted that fraud and unauthorized approach have become the main problem, as receiving digital payments in India will increase sharply.
Since digital transactions are now representing most retail payments in the country, the latest central bank intervention shows that the growing regulatory authorities of priorities are ensured by the financial system against cyber threats.
India Tops Global Cryptor Adoption Index, but face growing fraud
India now leads the world in the adoption of cryptocurrency, Suggesting the Crypt Adoption Adoption Index 2025 across all four partial indications.
However, the interruption of overvoltage in the use of local citizens and financial integration accompanied a wave of fraud and coercive measures.
August 6 attacked 11 seats in Delhi and other cities In connection with Bitcoin’s fraud of $ 29 million. Investigators say that fraudsters were the police, government agents and even technical support staff from Microsoft and Amazon to blackmail money from victims at home and abroad.
Unexpected funds were reportedly washed through USDT and Hawala Networks in the United Arab Emirates. The raids came only a day after ED began to explore fraud of $ 4.7 million, which includes the Spoofed Coinbase Web.
Indian crypto related crime has also reached courts. 31 August, The anti -corruption court condemned 14 menIncluding 11 and former police officers and one former legislator, to live in prison over the kidnapping of entrepreneur Shailesh Bhatt in 2018.
The group forced him to transfer bitcoins and cash, and prosecutors called it one of the most important cases of cryptority in the country.
Despite adoption, regulatory caution remains. Government Document of 10 September This India will not strive for a complex crypt law But it will maintain partial supervision through taxation and compliance.
Authorities have seen risks bound to speculative trading and stabnates, and their growth warning could disrupt the India payment system.
Indian approach subdued volumes of exchange through 30% of profits tax and 1% transaction payment, although global platforms continue to operate in the registration of the financial intelligence unit.
Officials estimate that the Indians hold digital assets around $ 4.5 billion, which shows a paradox: the world’s adoption leading along with systemic skepticism and recurring fraud.
