Online Payment | Major Changes in Online Payment Processes Effective April 1st

New Delhi: To enhance the security of online payments and prevent fraud against citizens, the Reserve Bank of India (RBI) has implemented changes to the processes related to online payments, effective from April 1st. Two-factor authentication has been made mandatory for all online payments. A password or an OTP alone will no longer suffice.

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According to the new regulations, a minimum of two verification methods will be required for every payment. Users will need to select from options such as a mobile PIN, UPI PIN, fingerprint, or OTP. For payments involving small amounts, a less rigorous verification process will be applied. Conversely, for large-value payments or suspicious transactions, additional verification will be required. This system is referred to as Risk-Based Authentication. For payments made on foreign websites or applications, these regulations will come into effect starting October 1, 2026.

A PIN Alone Is Not Sufficient

Previously, a PIN number alone was sufficient for online transactions. Now, a combination of methods—such as a password or PIN, a One-Time Password (OTP), biometric authentication (such as fingerprints or facial recognition), or a hardware token—will be utilized. In essence, the use of multiple security systems will be required.

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