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<h1>RBI Proposes New Authentication Methods for Digital Payments, Moving Beyond SMS OTPs to Boost Security and Flexibility.</h1> The Reserve Bank of India (RBI) has released a draft framework for alternative authentication mechanisms in digital payment transactions. Traditionally relying on SMS-based one-time passwords (OTP) as an additional factor of authentication (AFA), the RBI now seeks to incorporate technological advancements by offering a broader range of authentication options. This initiative aims to enhance security and flexibility for Payment System Operators and users. Stakeholders can submit feedback on the draft framework via email or post to the RBI by September 15, 2024.