OTP

Meaning :

OTP, or One-Time Password, is a unique and temporary code used to verify identity during online transactions or logins. This code works only once and expires after

a short period, enhancing security.

Example : 

For instance, when making an online payment, you receive a 6-digit OTP via  SMS to confirm that the transaction is authorized by you.

How to Understand OTP :

It serves as an additional security measure to protect your online accounts.

Even if someone has your password, they cannot access your account without the OTP.

OTPs can be received through SMS, email, or authentication apps for added  convenience.

Importance of OTP :

Provides strong security for online payments and transactions.

Helps prevent fraud, unauthorized access, and attacks based on stolen passwords.

It is mandatory for banking transactions as per guidelines from the Reserve Bank of India (RBI).

Ensures that only the legitimate account holder can approve payments.