The Reserve Bank of India (RBI) has announced new authentication guidelines for wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital payments, and they are set to reshape how we transact online. These rules will kick in from april 1, 2026, but the transition begins october 1, 2025. The focus: making transactions safer while keeping them user-friendly. Here’s everything you need to know:

1. Stronger Authentication Beyond OTPs

While OTPs (One-Time Passwords) will continue to be used, RBI wants to add extra layers of security. This could include device-based authentication, biometric verification, or tokenisation, ensuring your digital payments are harder to compromise.

2. Device Binding for Extra Safety

One of the highlights is device binding. This means your mobile or laptop will be uniquely linked to your account, preventing fraudsters from using stolen credentials on another device.

3. AI-Powered Risk Checks

Banks and payment apps will deploy AI-driven risk-based authentication. For instance, if you suddenly make a high-value transaction from a new location, the system could demand additional checks before processing.

4. Smooth Experience for Low-Risk Payments

Not all transactions will feel more complicated. For low-value or routine payments, RBI will allow faster, low-friction authentication, so you don’t get stuck entering endless OTPs for small purchases.

5. UPI, Cards, and Wallets Under the Same Rules

Whether you use UPI, debit/credit cards, or wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital wallets, the same upgraded authentication standards will apply. This uniformity ensures consistency and reduces loopholes across different platforms.

6. Timeline: What Changes When?

· October 1, 2025: Banks and payment companies start introducing the new systems in phases.

· April 1, 2026: Full compliance deadline—every wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital transaction will follow the new authentication norms.

What This Means for You

· Expect more secure payments with fewer chances of fraud.

· Small everyday transactions (like UPI transfers for groceries) will stay quick and simple.

· Big-ticket or unusual payments will involve extra verification for your safety.


Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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G GOWTHAM

28/09/2025 06:50 PM