In an increasingly digitalized world, ensuring the security of financial transactions is paramount. Acknowledging this, The Reserve Bank of India (RBI) has greatly advanced by implementing transactions based on two-factor authentication using Aadhaar. This step will strengthen financial activity security, and merchants trust for online transactions. In this engrossing article, we’ll dig into the intriguing world of Aadhaar-based 2-Factor Authentication, its advantages, and know about its crucial function in the Aadhaar Enabled Payment System (AEPS) and Aadhaar Pay.
Understanding Aadhaar-based 2-Factor Authentication
2-Factor Authentication based on Aadhaar is a system that combines two different types of verification to guarantee a transaction’s legitimacy. Incorporating this approach by RBI offers an additional layer of protection by fusing biometric verification with existing authentication techniques, significantly lowering the likelihood of fraud and illegal access.
The Two-Factor Authentication Process
- Traditional Authentication: The first factor involves the traditional authentication methods, such as passwords, PINs, or One-Time Passwords (OTP), that users are accustomed to using during transactions.
- Biometric Verification: The second factor introduces biometric authentication, using the merchants’s Aadhaar-linked biometric data. This involves fingerprint (thumb impression) making it significantly more challenging for fraudsters to impersonate the user.
Aadhaar-Based 2-Factor Authentication’s Advantages
- Enhanced Security: Integrating biometric data with standard authentication significantly decreases the risk of unauthorized access or fraudulent transactions. Each person’s unique biometric information makes it very difficult to duplicate.
- User convenience: Users may easily complete transactions after they’ve enrolled. Biometric verification simplifies the procedure by removing the need to carry physical tokens like OTP generators or memorize complicated passwords.
- Reliability : With heightened security measures, merchantss are more likely to place trust in digital transactions, thus accelerating the adoption of digital payment systems through biometrics. It is also necessary to note that the thumb impression will be valid for only 24 hours, which will play an efficient role in securing the transactions on daily basis.