RBI Urges OTP Alternatives to Enhance Security in Digital Payments | India Business News

MUMBAI: RBI will reassess the Aadhaar Enabled Payment System (AePS) after several instances of fraud involving silicon cloning of fingerprints. The central bank has urged regulated entities to seek alternatives to the SMS-based one-time password for second-factor authentication.
In his press conference, RBI governor Shaktikanta Das said the AePS, operated by NPCI, which facilitates customers in conducting digital payment transactions with assistance, has been used by 37 crore citizens in 2023.
“To bolster the security of AePS transactions, proposals include streamlining the on-boarding process for AePS touchpoint operators, mandating rigorous due diligence, and implementing additional fraud risk management protocols,” said Das.

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