Starting April 1, 2026, the Reserve Bank of India (RBI) new rules for digital payments will change how Indians make online transactions. For Indians using UPI, cards or wallets, RBI is making two-factor authentication mandatory, which means OTP alone will no longer be enough. A second step like PIN or fingerprint will be needed to complete the transaction.
In simple terms, every transaction will now go through two layers of security. While the process may feel slightly longer, the goal is to make digital payments safer and reduce fraud.
Earlier, most online payments depended heavily on OTP. But this system has become risky due to fraud methods like phishing and SIM swap scams. Along with OTP authentication, a second step like PIN or fingerprint reduces chances of unauthorized access.
The RBI digital payment rules April 1 bring a few practical changes:
- Payments may take slightly longer due to extra verification
- Regular users on trusted devices may see smoother transactions
- New devices or large payments may need extra checks
The system will also use risk-based authentication, where security depends on the transaction type and behaviour.
The RBI has also said similar authentication rules will apply to cross-border transactions. These rules will extend to international card payments and full implementation is expected by October 2026.
This ensures the same level of safety for global transactions.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.
