New Delhi, From April 1, 2026, making digital payments in India is set to become more secure, but slightly more time-consuming, as the Reserve Bank of India (RBI) rolls out new rules for online transactions.<\/p>\n\n\n\n
The central bank has made two-factor authentication (2FA) mandatory for all digital payments, including those made through UPI, debit and credit cards, and mobile wallets.<\/p>\n\n\n\n
This means that OTP alone will no longer be sufficient to complete a transaction. Users will now have to go through at least two layers of verification, such as a PIN, password, biometric authentication or token, along with OTP.<\/p>\n\n\n\n
The move comes amid rising cases of online fraud, including phishing and SIM swap scams, where OTP-based systems have proven vulnerable.<\/p>\n\n\n\n
By adding an extra layer of security, the RBI aims to reduce the chances of unauthorised transactions and improve trust in digital payment systems.<\/p>\n\n\n\n
For users, the change means that payments may take slightly longer to complete, especially on new devices or for high-value transactions.<\/p>\n\n\n\n
However, regular transactions on trusted devices are expected to remain relatively smooth.<\/p>\n\n\n\n
The system will also adopt a risk-based approach, where the level of security checks will depend on the nature and behaviour of the transaction.<\/p>\n\n\n\n
Another key aspect of the new rules is increased accountability for banks and payment platforms.<\/p>\n\n\n\n
If a fraud occurs due to a failure in their systems, financial institutions may be required to compensate customers.<\/p>\n\n\n\n
This is expected to ensure quicker resolution of complaints and push banks to strengthen their security infrastructure.<\/p>\n\n\n\n
The RBI has also indicated that similar authentication norms will be extended to international transactions, including cross-border card payments.<\/p>\n\n\n\n
Full implementation of these rules is expected by October 2026.<\/p>\n\n\n\n
With digital payments growing rapidly across India, the central bank\u2019s latest move is aimed at striking a balance between convenience and security.<\/p>\n\n\n\n
Experts said that while the extra verification step may feel like a small inconvenience, it is expected to significantly reduce fraud risks and make everyday transactions safer for millions of users.<\/p>\n","protected":false},"excerpt":{"rendered":"
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