The Reserve Bank of India announced new alternative methods for additional factor authentication (AFA) in digital payments, including options such as passwords, PINs, software tokens, and biometrics. These methods are categorized based on something the user knows, has, or is. Most digital transactions will need a dynamically created authentication factor unique to each transaction. Small-value, card-present transactions and certain recurring transactions are exempt from mandatory AFA. In February 2024, the RBI declared its plan to publish a Framework on Alternative Authentication Mechanisms.
