The method of making digital payments in the country is going to change slightly from April 1, 2026. The Reserve Bank of India has implemented new rules, under which two-factor authentication will be mandatory in every digital transaction. This simply means that now the payment will not be completed just by entering the OTP, but an additional security check will also be necessary.
This step of RBI has been taken to make online payments more secure. Cases of digital fraud have increased in the last few years, so this new system will help in keeping the users’ money safe. Now in every transaction your identity will be confirmed in two different ways.
What is 2FA and how will it work?
In 2FA i.e. two-factor authentication, your identity is checked in two ways. This could be something you have like a mobile or card, something you know like a PIN or password or something you own like a fingerprint or Face ID. Now when you make a payment, along with OTP, you may have to use fingerprint, PIN or any device-based authentication. That means another layer of security will be added.
What will change for the common people?
After the implementation of this new rule, it may take a little more time while making payment, because you will have to complete an additional step. But the good thing is that with this the security of your money will become stronger than before. Now the second factor for every transaction will be different every time. This means that even if one of the information gets stolen, the second security layer will keep your account safe.
If fraud happens then whose responsibility is it?
RBI has also made it clear that if any loss is caused due to the negligence of the bank or payment company, then the responsibility will be on that institution. In such cases the user will be given full compensation. Also, a stronger security system will be implemented for transactions happening abroad by October 2026.