Banking in India is becoming smarter and more secure. Starting January 1, 2026, the Reserve Bank of India (RBI) and NPCI have introduced several updates to protect your money and make digital payments smoother. Here is a simple breakdown of the latest rules.
1. Digital Banking Authorization (Effective Jan 1, 2026)
Banks now need explicit authorization from the RBI to offer mobile and internet banking services. For you, this means stronger security. Banks must now get your documented consent before enabling digital services on your account. You will also receive mandatory alerts for every operation performed on your account.
2. Closure of Dormant & Non-KYC Accounts
To prevent fraud, the RBI has directed banks to clean up “shadow” accounts:
- Dormant Accounts: Accounts with no activity for 2 years or more may be closed after the bank provides due notice.
- KYC Compliance: If your Aadhaar, PAN, or mobile number is not updated, your account may be restricted. Ensure your KYC is complete to avoid disruptions.
3. New UPI Limits and Features
UPI remains the most popular way to pay, but with new 2026 guidelines:
- Higher Limits: For specific categories like Hospitals, Educational Institutions, and IPOs, the transaction limit has been raised to ₹5 Lakh.
- Daily Cap: For regular person-to-person transfers, the limit generally remains at ₹1 Lakh per day (may vary slightly by bank).
- Security: New risk-based authentication might ask for biometrics (fingerprint/face ID) instead of just an OTP for high-value or suspicious transactions.
4. Basic Savings (BSBD) Account Upgrades
From April 2026, all banks must provide free mobile and internet banking to Basic Savings Bank Deposit (BSBD) account holders. Banks can no longer charge these customers for cash deposits at branches or ATMs, promoting better financial inclusion.
5. Credit Score Updates
In 2026, your credit score won’t just update once a month. Banks are now required to report data more frequently—sometimes weekly. This means if you miss an EMI or credit card payment, it will reflect on your score almost immediately.
