RBI plans to replace OTPs with new technology to combat digital scams | Deets inside
India is considering replacing mobile one-time-passwords (OTPs) with new technology to combat digital scams. OTPs are used for verifying digital payments but have been exploited by scammers.
The Reserve Bank of India (RBI) aims to enhance security by adopting authentication apps or biometric sensors on smartphones, which would prevent SIM swapping and spying on devices.
RBI’s approach to security
The RBI plans to eliminate SMS-based OTP transactions to boost security and give users more control over payments. This move would make it harder for hackers to bypass security measures.
Comparison with other platforms
Other platforms, like X (formerly Twitter), have already switched from SMS-based verification to authentication apps for improved security. The RBI acknowledges the need to address security concerns and may opt for Multi-Factor Authentication (MPIN) similar to UPI payments.
Challenges and considerations
Transitioning from OTPs to authentication apps poses challenges, especially for users with feature phones lacking app support. The RBI must ensure inclusivity and accessibility for all users, not just those with smartphones.
