The Reserve Bank of India (RBI) has rolled out a fresh set of digital payment rules aimed at enhancing security and protecting customers from fraud. With the increasing use of UPI, internet banking, and digital wallets, these measures are designed to ensure safe and seamless online transactions.

Here’s a detailed look at the new payment rules introduced by RBI.

Key Highlights of RBI’s New Payment Rules

1. Mandatory Two-Factor Authentication (2FA)

   • All online card and UPI transactions will require stronger two-factor authentication.

   • This includes OTP-based verification or biometric confirmation.

2. Tokenization for Card Payments

   • Merchants will no longer be allowed to store customer card details.

   • Instead, card tokenization will be mandatory, ensuring sensitive data is encrypted.

3. Limits on Automatic Payments

   • Auto-debit transactions (for subscriptions, EMIs, bills) above ₹5,000 will now require user authentication before processing.

4. Stricter UPI Transaction Monitoring

   • Enhanced fraud detection and AI-based monitoring will be implemented.

   • Suspicious or high-value UPI transfers may require additional verification.

5. Customer Complaint Redressal

   • Banks and payment providers must resolve failed transaction complaints within 48 hours.

   • Compensation policies have been strengthened.

Impact on Users

• Safer Payments: Reduced chances of card/UPI fraud.

• More Control: Users will be notified and asked to approve high-value debits.

• Smooth Experience: While extra verification steps may take a few seconds longer, they ensure stronger protection.

How to Stay Compliant as a User

✔️ Always update your mobile number and email linked to your bank account.
✔️ Enable SMS and app notifications for all transactions.
✔️ Avoid sharing OTPs or PINs with anyone.
✔️ Register complaints immediately if unauthorized transactions occur.