RBI Digital Payments Rule from 1st April: RBI's new rules for digital payments will come into effect from April 1, 2026. Their aim is to prevent online fraud and make digital payments more secure.

RBI's new rules for digital payments will come into effect from April 1.

RBI Digital Payments Rule from 1st April: RBI's rules for digital payments are going to change from April 1st, 2026. In fact, the Reserve Bank of India is going to implement a new 'principle-based framework' for digital payments. Its purpose is to prevent online fraud 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, card, wallet).
• Simply sending an OTP via SMS will no longer be sufficient for transactions. An additional layer of security will be required to authenticate the transaction.
• Under the new rules, at least one authentication factor must be dynamic, specifically designed for that transaction.
• Banks and payment companies will have multiple options for verification, like biometrics, PIN/password, banking app token, etc.

If any mistake in the security system causes any loss to the customer, then the banking and related institutions will be responsible for it.

What will be its benefits?

• Due to the new rules, even if someone gets hold of the OTP received on your mobile, they won't be able to make a payment because they don't have your fingerprint or other security layer. Previously, you could simply go to a shop, scan it, and make a payment, but now, along with entering a PIN, you may be asked for your fingerprint, digital code, and so on.
• This will also protect against SIM-swap. Hackers often obtain a second SIM card in your name, but simply having a SIM card in someone else's name won't be enough.
• From now on, if someone tries to transact a large amount from your phone, the system will automatically provide extra verification.