By Admin 
RBI Digital Payments Rule from 1st April: RBI rules for digital payments are going to change from April 1, 2026. Actually, the Reserve Bank of India is going to implement a new ‘Principle-based framework’ for digital payments. Its purpose is to prevent online frauds like phishing and SIM-swap and to make digital payments more secure.
Changes from April 1
- From now on, two-factor authentication will be mandatory for all digital transactions (UPI, cards, wallets).
- Now during transaction, OTP received only on SMS will not be enough. An additional security layer will be required to authenticate the transaction.
- Under the new rules, at least one authentication factor must be dynamic, created specifically for that transaction.
- Banks and payment companies will have many options for verification like biometrics, PIN/password, banking app token.
If any mistake or omission in the security system causes any loss to the customer, then the responsibility of this will be on the banking and related institutions.
What will be its benefits?
- Due to the new rule, even if someone comes to know about the OTP received on your mobile, he will not be able to make the payment because he will not have your fingerprint or other security level. Earlier you used to go to the shop and make payment directly by scanning, but now along with entering the PIN, you may be asked for fingerprint, digital code etc.
- This will also provide protection from SIM-swap. Many times hackers take out another SIM in your name, but now just having a SIM in someone’s name will not be enough.
- From now on, if someone tries to transact a large amount from your phone, the system will automatically provide additional verification.
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