Getting OTPs while paying online? Here’s why RBI’s new rule changes everything
Follow UsOnline payments now require OTP, biometrics, or device-based verification in addition to PIN.
Changes aim to reduce fraud and shift towards more secure, risk-based authentication systems.
Other updates include revised SBI Card rewards, higher National Highways Authority of India FASTag fees, and stricter PAN documentation rules.
If you are a regular digital payment platform user, then you should be aware that many new rules have come into effect starting today. The Reserve Bank of India (RBI) has introduced tighter authentication rules to cater to the increasing number of fraud and cyber threats. Under this revised framework, most digital transactions will now need two-factor authentication (2FA), adding an extra verification step beyond the traditional PIN or password.
SurveySo this means, if you are making digital transactions, you may need to confirm payments using dynamic methods like one-time passwords (OTP), biometric authentication like fingerprint or facial recognition or device-based verification. With this, the authorities aim to curb the financial fraud happening.
The industry experts suggest that this new way transitions towards risk-based authentication, allowing payment systems to adopt more flexible and secure verification methods while maintaining ease of use. The updated guidelines are also said to improve trust in digital transactions.
Along with this, many changes in banking and financial rules have come into effect. Card issuers such as SBI Card have revised the reward redemption structure, while the National Highways Authority of India (NHAI) has changed the fees of the FASTag annual pass.
Adding on, banks have also made changes to ATM usage rules, charges and service conditions, as institutions including HDFC Bank, PNB and Bandhan Bank adjusted the policies. On the compliance front, PAN card applications will now require stricter documentation, with authorities mandating that applicant details match Aadhaar records more precisely.
On the other hand, the country’s tax system is also transitioning to the new Income-tax Act, 2025, replacing the decades-old Income-tax Act, 1961, with provisions in place to ensure continuity for ongoing cases.
