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Starting from April 1, 2026, India will see major updates to its digital payment and banking regulations as the Reserve Bank of India has set forth new, stricter guidelines to curb fraud and enhance responsibility. With this new system, two-factor authentication will be required for all digital transactions, marking a significant shift in how payments are made via UPI, credit cards, and mobile wallets. This decision is in light of increasing dangers associated with systems relying on one-time passwords, which have been exploited through fraud methods like phishing and SIM swapping. The RBI's latest regulations state that every digital payment method must be confirmed using at least two different verification methods.
In the updated rules, while OTPs will still be one part of the authorization process, they will need to be paired with another reliable verification step. Consequently, one-time passwords alone will not be enough, and each transaction will need an additional layer of confirmation such as a PIN, password, biometric check, or secure token. Therefore, all payments will involve two stages of security, which will make the process a little longer but much safer.
To maintain the right balance between safety and ease of use, banks will adopt a risk-based strategy.
Low-Risk: Payments from recognized devices or regular small purchases may continue to be fast and easy.
High-Risk: Large transactions or those initiated from unfamiliar devices may require extra verification measures.
Additionally, the RBI has increased accountability measures, placing more responsibility on banks and payment services to ensure secure operations.
Fraud Compensation: If fraud happens due to system issues or errors, organizations may need to compensate users, which could lead to faster resolution of problems.
Faster Resolution: The new regulations aim to guarantee quicker handling of fraud-related issues.
The National Payments Corporation of India has implemented various limits to enhance efficiency.
Balance Check Limits: Users are restricted to a maximum of 50 balance inquiries per app each day to avoid system strain.
Account Linking: You can link a maximum of 25 bank accounts within a single UPI app daily.
Status Check Gaps: The status of pending transactions can only be checked three times, with a required gap of 90 seconds between each check.
Auto-Debit Timing: Regular payments such as EMIs and subscriptions will now be handled during non-peak hours, for example, before 10 AM or after 9:30 PM.
ATM Charges: HDFC Bank and other retailers will now include UPI cardless withdrawals in your monthly free transaction count. After reaching that limit, a charge of Rs 23 plus taxes will be applied.
Lounge Access: Starting today, holders of RuPay Platinum debit cards will no longer be allowed to enter airport or train lounges.
International Payments: The same two-factor authentication rules will apply to international transactions, with full compliance needed by October 1, 2026.
In addition to digital payments, there are also other updates regarding finances and travel. Indian Railways has updated its ticket cancellation guidelines, shortening the time for refunds. Passengers who cancel tickets less than eight hours before their scheduled departure will not receive a refund, unlike the previous four-hour rule.
Within 8 hours of departure: 0% refund (no refund for confirmed tickets)
8 to 24 Hours Before: 50% refund (50% penalty).
24 to 72 Hours Before: 75% refund (25% penalty).
More than 72 Hours Before: Maximum refund (flat deduction).
Waitlist/RAC: Rules for cancellation remain in place up to 30 minutes before the train leaves.
At the same time, the National Highways Authority of India has raised the annual FASTag pass fee from Rs 3,000 to Rs 3,075 for the fiscal year 2026–27, starting April 1. From April 1, 2026, changes to PAN card regulations mean that applications submitted with only Aadhaar will not be accepted and must include additional proof of birth. Applicants need to provide documents like a birth certificate or passport. Furthermore, the name on the PAN must match the one on Aadhaar, and new specific forms (Form 93-96) need to be filled out.
