UPI, card payments get stricter security norms this April: 15 key points to know

CHENNAI: Digital payments in India are now more secure after the Reserve Bank of India (RBI) introduced stricter rules earlier this month. While aimed at curbing fraud, the changes may cause minor delays in transactions.

Here are the key points explained simply:

1. 2FA mandatory for all digital payments

The RBI has made two-factor authentication (2FA) compulsory for all online payments, including UPI, debit cards, credit cards, and mobile wallets.

2. OTP alone will not be enough

Users can no longer rely only on OTP. Payments will now require an additional layer such as PIN, password, biometric, or token.

3. Applies to UPI, cards and wallets

The new rules will cover all major payment modes including UPI apps, debit/credit cards, and digital wallets.

4. Aim is to reduce rising fraud

The move comes amid increasing cases of phishing, SIM swap scams, and other online frauds.

5. Extra step may slow down payments slightly

Transactions may take a few extra seconds, especially for first-time payments or on new devices.

6. Regular users may not feel much difference

Payments on trusted devices and frequent transactions are expected to remain smooth.

7. Risk-based system will be followed

Security checks will depend on the type of transaction. High-value or unusual activity may trigger stricter verification.

8. Banks may be held accountable for fraud

If a fraud happens due to system failure, banks and payment platforms may have to compensate customers.

9. Faster complaint resolution expected

With higher accountability, users can expect quicker handling of fraud complaints.

10. Rules may extend to international payments

Similar authentication steps could soon apply to cross-border card transactions as well.

11. Full rollout expected by October 2026

The RBI plans to fully implement these changes across the country by October 2026.

12. RBI proposes 1-hour delay for payments above Rs 10,000

In a discussion paper, the RBI has suggested adding a 1-hour delay for UPI/IMPS transfers above Rs 10,000.

13. Users can cancel transaction during delay

During this one-hour window, users will have the option to cancel the payment if they suspect fraud.

14. High-value frauds behind this move

Transactions above Rs 10,000 account for nearly 98.5% of total fraud value, making them a key focus area.

15. More safety options under consideration

Other proposals include:

A trusted person approval system for senior citizens

Limits on large credits into accounts

A kill switch to instantly block all digital payments

With digital payments growing rapidly, the Reserve Bank of India is trying to strike a balance between convenience and safety. While users may experience minor delays, these steps are expected to make transactions much safer in the long run.