- Date : 12/09/2022
- Read: 3 mins
Demat account log-in rules from 01st October!
The Demat account login might not be possible for you from 1st October if you do not enable two-factor authentication. The circular was issued on 14th June by the National Stock Exchange (NSE) of India. As per the circular, the authentication will be based on two main factors:-
- Biometric authentication- Like face id, thumb impression, etc.
- Knowledge factor- Something only the user knows, like a PIN or password. Also, possession factors like the OTP or security token can be used in place of the knowledge factor.
In cases where biometric authentication is not possible, the following three authentications will be required:-
- Knowledge factor- Something only the user knows, like a PIN or password.
- Possession factor- Something like the OTP or security token.
- User ID
What are the implications?
As per the experts, many stockbrokers were using two-factor authentication in the form of OTP and PIN. But both these factors are knowledge factors. This means that these two factors will not be allowed to be used together. This means that the stockbrokers need to update their login process, and you might be needed to update your two-factor authentication.
Many stockbrokers like Zerodha have started informing their clients to update their two-factor authentication to log in to their accounts from 1st October 2022. They are asking their clients to update the TOTP (Time-based One Time Password). TOTP differs from OTP in the sense that TOTP is usually for a very small time duration, like 30 seconds.
You should update your biometric authentication as soon as possible. In case biometric authentication is not possible, you will still need to update your authentication details to factor in the knowledge factor and the possession factor. This means a combination of password/pin and OTP/TOTP/Security token. It is possible that the stockbrokers might not get biometrics updated as biometrics is not possible in desktop-based login, and desktop-based login is also necessary. Thus, you might need to update the knowledge factor and possession factor.
You should check out with your stockbroker and update your two-step authentication as soon as possible. If you do not update your details by 30th September, you might not be able to access the Demat account from 01st October. Also, make sure to update your possession and knowledge factors to log in from your desktop. You should also ensure that your biometric is updated so that you can log in with your mobile phone as well. Make sure to update the details by 30th September to avoid any inconvenience.
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