Fintechs hail RBI’s new digital payments authentication framework 

Industry experts noted that one of the biggest beneficiaries of the move will be first-time digital users, especially those in semi-urban and rural areas, where trust in formal financial channels is still evolving

Fintech firms and financial institutions have applauded the Reserve Bank of India’s (RBI) updated guidelines for digital payment authentication, describing it as a progressive framework that enhances security while fostering trust in digital transactions.

Industry stakeholders emphasized the timing aligns with the exponential growth in digital payments nationwide, alongside emerging concerns about transaction security risks.

“RBI has introduced a forward-thinking structure that allows payment providers to implement advanced authentication methods beyond traditional SMS-based OTPs,” noted Shailesh Paul, CEO of Wibmo, a PayU subsidiary. “This includes biometric verification and AI-driven risk assessment tools tailored to transaction profiles.”

Paul highlighted that Wibmo’s technology solutions already support billions of secure transactions globally, preparing to meet these new guidelines by implementing features like biometric authentication and passkeys.

Financial inclusion experts suggest the move will particularly benefit rural and semi-urban populations, where digital trust in financial systems remains nascent but crucial for growth.

Sunil Yadav, Chief Information Officer of Satin Creditcare Network Ltd, stated: “This framework marks a pivotal advancement in strengthening payment security without compromising usability. Everyday transactions like utility payments or merchant purchases will become inherently more trustworthy.”

Yadav emphasized the importance of multi-factor authentication methods that blend device verification, biometrics, and behavioral analytics, asserting this approach could position India as a global benchmark for secure digital transaction ecosystems. “First-time users will gain confidence in formal financial channels, accelerating adoption across demographics,” he added.

The RBI’s guidelines outline a technology-agnostic strategy to shift authentication mechanisms from SMS-based OTPs to adaptive systems, incorporating factors such as device identity and transaction behavior analysis.

This framework will empower payment providers to implement customized security protocols based on transaction value and risk context. Financial analysts predict that as digital payments continue to grow, the RBI’s proactive approach ensures security infrastructure evolves alongside usage patterns.

Published on September 27, 2025