RBI plans passwordless digital payments with new rules

The Reserve Bank of India (RBI) has introduced new Authentication Rules designed to accelerate the transition toward passwordless and secure digital payments across the country. This regulatory push marks a pivotal shift in India's digital payments ecosystem, moving away from traditional One-Time Password (OTP) methods toward more robust alternatives like biometrics, passkeys, and device-based authentication. Speaking to Bizz Buzz, S Anand, Founder and CEO of PaySprint, highlighted that this evolution goes beyond mere security enhancements. He noted that passwordless authentication significantly reduces fraud risks such as phishing and fake payment confirmations, particularly benefiting businesses and Micro, Small, and Medium Enterprises (MSMEs). According to Anand, building greater trust in digital commerce is essential as transaction volumes continue to grow. Apurv Modi, Managing Director and Co-Founder of Abhay Group, described the move as a critical moment for India's digital evolution. He emphasized that reducing friction in transactions is vital for a mobile-first market where millions access services via smartphones. Modi pointed out that these systems enable faster interactions while enhancing security, which is crucial for sectors ranging from content consumption to gaming and smart devices. Looking ahead, experts suggest that deeper convergence between authentication, identity, and personalized digital experiences will define the next phase of growth. Businesses that successfully integrate seamless security into user journeys without compromising convenience are expected to scale effectively. This alignment supports the broader vision of making advanced technology accessible to diverse user segments who may have previously faced barriers due to complexity.