RBI Implements New Regulations on Digital Payments

A key measure introduced by the Reserve Bank of India (RBI) to curb digital and cybercrimes has come into effect from Wednesday. Under this new framework, entering only a PIN is no longer sufficient for making digital payments. In addition to the PIN, an extra layer of verification is required, such as an OTP sent via SMS from the bank or biometric authentication like fingerprint or facial recognition.

This rule applies to all types of transactions conducted through UPI, debit cards, credit cards and prepaid instruments. Due to these changes, large-value digital transactions and payments made from new devices are expected to take slightly longer to process. However, trusted devices and routine small-value transactions are unlikely to face significant inconvenience. It has also been noted that users making payments through banking applications will no longer be able to take screenshots.