From April 1st, the process of making online digital payments is set to change completely. The RBI has made some changes to regulations to prevent online fraud and cyberattacks. Two-factor authentication will now be required for digital payments. This is being done to make UPI, net banking, and card payments more secure. This will add another layer of security to your digital payments. Even if someone knows your password, they won’t be able to make payments from your account without first navigating this second layer of security. This will eliminate the flaws in outdated technologies like passwords and OTPs.
In simple terms, your transactions can no longer be completed relying solely on an OTP. Modern security standards like biometrics or Face ID will also be required. Consequently, even if your phone is stolen or your SIM is swapped after April 1st, hackers won’t be able to access your bank account.
From April 1, 2026, every digital payment will require two-step verification. This can be considered an additional layer of security. It will include options like PIN, password, biometrics, and tokens. The key point is that one factor in two-step verification will be dynamic. Simply put, one authentication factor will be unique, preventing fraudsters from making payments from someone else’s account. This will protect people from threats like SIM swaps and phishing.
Until now, OTPs were used as a security tool for online payments. However, it was observed that online fraudsters were easily able to steal OTPs. Now, according to the new rules, banks will be able to choose options like biometrics or device binding based on their convenience and technology. This means that in addition to OTPs, you will now have to approve payments using your device’s biometric settings or device binding.
Risk-based authentication will also be introduced. This means that if you make a small payment using your regular device and a familiar location, the payment process will be simple and short. However, for a new device or a larger amount, the system may perform additional security checks.
By tightening the new rules, RBI is also going to make a provision that if a bank or payment app does not follow security rules and you are defrauded, the bank will have to compensate for the entire loss. This will force banks to adopt new and improved security methods. According to the report, (REF.) Experts also hope that these changes will make online digital payments much safer.