RBI promotes OTP substitutes

MUMBAI: Following many incidents of fraud involving the silicon cloning of fingerprints, the RBI will reevaluate the Aadhaar Enabled Payment System (AePS). For second-factor authentication, the central bank has advised regulated firms to look for solutions other than the SMS-based one-time password.

Shaktikanta Das, the governor of the Reserve Bank of India, said during a press conference that 37 crore people have utilized the AePS, run by the National Payments Commision (NPCI), 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,” Das said.