Axis Bank has launched a new in-app mobile OTP authentication system to enhance its digital banking services, expanding the institution’s growing portfolio of digital identity solutions. The system works with the bank’s existing digital account opening and verification processes to strengthen security measures for customers amid rising concerns about mobile banking security threats.
The authentication system comes as part of a comprehensive digital banking package featuring zero-balance salary accounts that customers can open through the Axis Mobile app or Internet Banking platform. Account opening requires a video-based KYC validation process, which must be completed within 72 hours of initial funding, following India’s expanding adoption of video KYC technology in the financial sector.
Customers can choose between Aadhaar-based authentication or traditional physical KYC documentation. The Aadhaar option enables customers to authenticate their identity and link their Aadhaar number to all existing, new, and future accounts and profiles within the bank’s system. The integration reflects the broader trend of Aadhaar-enabled payment systems gaining widespread adoption across India’s banking sector.
The new OTP authentication mechanism provides an additional security layer for digital banking transactions, supporting the Reserve Bank of India’s recent initiatives to strengthen digital banking security. The feature enhances other digital services offered by the bank, including complimentary benefits such as four free airport lounge visits for digital salary account holders.
Under the system’s terms, customers must complete video KYC validation within the specified timeframe to maintain full account functionality. Accounts may be frozen if KYC requirements are not met, in line with broader regulatory requirements for KYC compliance in Indian banking. The bank maintains discretion to require in-person branch visits for physical KYC validation in cases where technical issues arise during the video verification process.
The implementation represents part of the banking sector’s broader transition toward digital authentication methods and remote account services, following the RBI’s guidelines for digital banking security. The changes meet regulatory requirements while addressing customer demands for convenient account access in an increasingly digital banking landscape.
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