- By Prateek Levi
- Mon, 30 Mar 2026 02:20 PM (IST)
- Source:JND
UPI payment rules update 2026: There are some major changes coming to the digital payments regulations in India that will come into effect starting from April 1, 2026. Following a directive put forward by India's apex bank, the Reserve Bank of India (RBI), which now requires two-factor authentication (2FA). This simply means that you just need an OTP, which will no longer be enough to carry out a transaction, but users will have to verify themselves twice through two different methods. Although 2FA is not a new thing and most devices and payments follow a two-step process, like when making payments through UPI, you need to first unlock the app through the device (device binding) and then the PIN or fingerprint, whatever you have set, but this is a step to prevent fraud and add an extra layer of security. So let's take a deeper dive into what changes will come into effect starting April 1, 2026, and everything you need to know about it.
Changes Starting April 1
Till now we all have been familiar with the way we make online transactions, with UPI or OTPs, but after these rules come into effect, two verification factors will be required. This is to bring the instances of fraud payments and online theft down. But what are these two methods?
2FA Methods Explained
In order to complete a transaction, users will now have to use one of the two methods: firstly, either enter a PIN that you have set and then the OTP or do the same with a biometric/fingerprint scanner and then an OTP. One of these methods must be time-specific and dynamic in nature, which means that it is uniquely generated for a specific task. The same logic will be applied to payments carried out through cards online through banks' e-portal. Before this an OTP was enough, but now things like device recognition and tokenised cards will also be checked. It's not an entirely new concept but has a few implements in it to make it solid.
Why The Need?
These new rules will make simple SMS-based OTP transactions obsolete, and this comes against the backdrop of rising phishing instances, SIM swapping and OTP frauds. Cybercriminals have amped up their tricks and can now impersonate people and give out fake OTPs to clear out your bank account. This 2FA makes things difficult for them and is a step in the right direction.