India’s digital payments landscape is undergoing a significant transformation as the Reserve Bank of India (RBI) implements a new risk-based authentication framework, effective April 2026. This framework will enhance security by allowing banks to utilize multiple signals, such as device behavior and transaction history, rather than relying solely on one-time passwords (OTPs). Additionally, from October 8, 2025, biometric authentication will be introduced for digital payments via the Unified Payments Interface (UPI), leveraging Aadhaar data for facial recognition and fingerprints. Experts have welcomed these progressive measures, which promise to improve fraud detection and customer convenience amidst evolving cyber threats. However, challenges remain, as many banks will need substantial infrastructure upgrades to support these innovations and ensure seamless user experiences. Moreover, the shift towards a zero-trust model in India’s payment ecosystem underscores the importance of balancing security, compliance, and user convenience, signaling a maturation of the country’s digital finance landscape. This initiative is poised to set new global benchmarks in digital payment security, reflecting India’s commitment to safeguarding consumer interests while promoting technological advancement in financial services.