The Reserve Bank of India (RBI) is set to introduce new rules for digital payments from April 1, 2026, making online transactions more secure for users across the country.
Under the updated guidelines, all digital payments, whether through UPI, debit cards, credit cards, or internet banking, will now require two-factor authentication (2FA). Simply entering a one-time password (OTP) will no longer be enough to complete a transaction. Users will need to verify payments using an additional step, such as a PIN, password, or biometric method like a fingerprint or face scan.
The idea behind this change is simple: add an extra layer of protection. With online fraud cases rising alongside the rapid growth of digital payments, the RBI wants to ensure that transactions are safer and harder for fraudsters to misuse.
The new system is designed to be both secure and user-friendly. For smaller or routine payments made from trusted devices, the process may remain quick and smooth. However, for larger or unusual transactions, users might be asked to complete extra verification steps. This risk-based approach aims to balance convenience with safety.
The changes will also affect recurring payments such as subscriptions and automatic bill payments. Users may be required to re-confirm these transactions from time to time to ensure they are still authorised.
Banks and digital payment platforms have already been instructed to upgrade their systems to meet the new requirements. Many are expected to introduce more advanced features like device-based authentication and biometric verification to make the process seamless.
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