Daily Indian Fintech & Banking Brief – 8 March 2026
- RBI Proposes New Digital Banking Fraud Protection Rules: The Reserve Bank of India (RBI) has proposed new regulations effective from July 1, 2026, to enhance customer protection against digital banking fraud. The draft Third Amendment Directions, 2026, cover UPI payments, internet banking, mobile banking, and card transactions. Key highlights include clearer definitions of authorized vs. unauthorized transactions, with transactions using fraudulently obtained credentials or those executed under coercion deemed fraudulent. Customers must report fraud within 5 days to both their bank and the National Cyber Crime Helpline (1930) to be eligible for compensation. A compensation mechanism provides up to 85% of losses (or Rs 25,000, whichever is lower) for frauds up to Rs 50,000, available once in a customer’s lifetime. The RBI has invited public feedback on these proposals until April 6, 2026.
Read more: Money Control
- UPI Transaction Limits Under Discussion for April 2026: As of March 7, 2026, RBI and NPCI are discussing potential updates to the UPI ecosystem set for April 2026, though no official uniform transaction limits have been announced. Currently, the standard UPI transaction cap remains at ₹1 lakh per day, with higher limits of ₹5 lakh for verified merchant payments in categories like healthcare, education, government payments, and travel. Individual banks may impose lower internal limits. New UPI users face a temporary ₹5,000 limit during their first 24 hours to prevent fraud. Reports indicate a major public sector bank may introduce new fees for UPI-based ATM withdrawals.
Read more: CA Club India
- Government Weighs Return of Merchant Charges on UPI, RuPay: The Indian government is considering reintroducing merchant charges (Merchant Discount Rate, MDR) on UPI and RuPay debit card transactions, which are currently free for merchants. Banks have sent a formal proposal to the Union government suggesting MDR for large merchants with annual GST-based turnover exceeding Rs 40 lakh, potentially adopting a tiered pricing system where larger merchants pay higher fees. Smaller merchants with turnover below Rs 40 lakh would continue to access UPI services free of charge. This move aims to balance the costs of digital payments and support the sustainability of the payments ecosystem.
Read more: Economic Times
- RBI Issues Directives for Enhanced Payment System Security: RBI has issued new directives mandating non-bank Payment System Operators (PSOs) to implement real-time fraud monitoring solutions to detect suspicious transactions and generate alerts. The guidelines require mobile app sessions to automatically terminate after a set period, requiring users to re-login. Card networks must encrypt customer card details stored on servers, and prepaid payment instrument issuers should inform users about OTPs and transaction alerts in their preferred language. These measures aim to improve cyber resilience and overall safety of digital payments in India.
Read more: Jagran
- UPI Meets Credit Cards: The integration of credit cards with UPI is allowing users to link select credit cards through UPI apps for easier payments via QR codes. While this simplifies digital transactions, it raises concerns about potential hidden spending traps as easier access to credit may encourage increased or impulsive spending. This reflects ongoing innovations in India’s fintech and digital banking landscape overseen by the RBI.
Read more: ABP Live