New Delhi: Banks and telecom firms in India are preparing to move away from OTPs, and most users probably won’t even notice when it starts happening. The
new system is called silent authentication. It sounds simple, but it quietly changes how payments get approved.
This comes just before the Reserve Bank of India’s updated rules on two-factor authentication kick in on April 1, 2026. OTPs have done the job for years, but let’s be honest, they are messy. Messages arrive late, sometimes not at all. And fraud through SIM swaps keeps popping up.
How does Silent authentication work?
Instead of asking you to type a code, the system checks your SIM in the background. It matches the SIM on your phone with the number linked to your bank app.
If something doesn’t match, the payment stops. No warning, no extra step. Just blocked.
This removes friction, yes. But it also removes the user from the loop. You trust the system to decide, and you don’t really see how.
Axis Bank, telecom firms test early rollout
Banks like Axis Bank are already testing this with telecom operators. The idea is to use network data instead of SMS.
Anyone who has stood at a checkout screen waiting for an OTP knows the pain. This tries to fix that. Payments could feel instant.
But banks still have to follow RBI rules. So this is not just about speed. It’s about meeting compliance without annoying users.
RBI mandate pushes change
The RBI now wants stronger checks for digital payments. Each transaction needs more than one layer of verification.
Silent authentication fits in here. It checks SIM and device details at the network level. That makes it tougher for someone trying to hijack an OTP.
Benefits and trade-offs
Yes, payments get faster. That’s the obvious win. Fraud detection could improve, too. Real-time checks help.
But there is a catch. You don’t see what’s happening anymore. If a payment fails, you might just stare at your screen wondering why.
This system leans heavily on telecom networks. If the network has issues, the whole process could break.
Banks and telcos also need to sync their systems properly. That’s easier said than done.
And here’s the uncomfortable bit. When security becomes invisible, problems can stay invisible too.
