UPSC Chairman Dr. Ajay Kumar shared five key success tips for aspirants during a live town hall interaction marking UPSC’s 100th year:
1. Stay Curious – Always keep questioning and learning, as curiosity is the foundation of civil service success.
2. Be Consistent – Maintain a disciplined, regular study routine instead of relying on intense short bursts of preparation.
3. Focus on Your Goal – Avoid distractions and peer pressure; know clearly why you started and stick to that purpose.
4. Adopt a Positive Mindset – Accept failures as learning opportunities, keep confidence, and continue with renewed energy.
5. Manage Your Time Wisely – Time is ample; the key lies in how effectively and smartly it is utilized during preparation.
Dr. Ajay Kumar also encouraged aspirants to view the UPSC journey as a chance to serve the nation, reminding them that not clearing the exam is not the end of the world, and there are always other ways to contribute to society
1. Stay Curious – Always keep questioning and learning, as curiosity is the foundation of civil service success.
2. Be Consistent – Maintain a disciplined, regular study routine instead of relying on intense short bursts of preparation.
3. Focus on Your Goal – Avoid distractions and peer pressure; know clearly why you started and stick to that purpose.
4. Adopt a Positive Mindset – Accept failures as learning opportunities, keep confidence, and continue with renewed energy.
5. Manage Your Time Wisely – Time is ample; the key lies in how effectively and smartly it is utilized during preparation.
Dr. Ajay Kumar also encouraged aspirants to view the UPSC journey as a chance to serve the nation, reminding them that not clearing the exam is not the end of the world, and there are always other ways to contribute to society
UPSC Chairman Dr. Ajay Kumar has justified retaining the optional subjects in UPSC Mains
He argues that optional papers serve as a key component for evaluating aspirants' depth of knowledge, mastery in a subject of their choice, and their readiness for complex administrative challenges
Justification for Optionals
- The two optional papers allow candidates to showcase advanced understanding and analytical ability in a specialized discipline, which is critical for assessing suitability for the civil services
- With 48 optional subjects, aspirants can select a field they are genuinely comfortable with, ensuring fair competition and that talent from varied academic backgrounds gets recognized equitably
- Kumar emphasizes that the skills and deep knowledge demonstrated in the optional paper are “very important for evaluation” and remain useful in administrative service as well
- To ensure fairness, UPSC uses a moderation formula that adjusts for variance in marking styles and subject difficulty, enabling a single consolidated merit list
- He has stated there is no current proposal to scrap optionals, as they are essential for picking candidates who possess both specialized expertise and broad-based capability in problem-solving
Dr. Kumar's stance is that optional subjects add rigor, inclusivity, and merit-based differentiation to the UPSC examination, making them indispensable to the Mains system
He argues that optional papers serve as a key component for evaluating aspirants' depth of knowledge, mastery in a subject of their choice, and their readiness for complex administrative challenges
Justification for Optionals
- The two optional papers allow candidates to showcase advanced understanding and analytical ability in a specialized discipline, which is critical for assessing suitability for the civil services
- With 48 optional subjects, aspirants can select a field they are genuinely comfortable with, ensuring fair competition and that talent from varied academic backgrounds gets recognized equitably
- Kumar emphasizes that the skills and deep knowledge demonstrated in the optional paper are “very important for evaluation” and remain useful in administrative service as well
- To ensure fairness, UPSC uses a moderation formula that adjusts for variance in marking styles and subject difficulty, enabling a single consolidated merit list
- He has stated there is no current proposal to scrap optionals, as they are essential for picking candidates who possess both specialized expertise and broad-based capability in problem-solving
Dr. Kumar's stance is that optional subjects add rigor, inclusivity, and merit-based differentiation to the UPSC examination, making them indispensable to the Mains system
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UPSC GS Economy (GS 3) by CA Rahul Kumar
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1. The RBI Monetary Policy Committee kept the repo rate unchanged at 5.5% with a neutral stance for the second consecutive meeting, after cumulative rate cuts of 100 basis points earlier in 2025.
2. Inflation projection for FY26 was sharply lowered to 2.6%, citing moderation in food prices and GST reforms, while GDP growth forecast was revised upwards to 6.8% for 2025-26, backed by strong domestic consumption and investment.
3. RBI’s approach emphasizes supporting economic growth through structural reforms, improved credit channels, and regulatory strength rather than relying purely on temporary rate cuts.
4. Bank credit growth has slowed, but non-bank finance is helping offset this moderation, and RBI is opening new avenues for credit and infrastructure funding.
5. The overall policy balances price stability with growth imperatives and keeps the door open for future rate adjustments if warranted by macroeconomic conditions; key focus remains robust monetary policy transmission Key Term: Monetary Policy Transmission
Monetary Policy Transmission is the process by which changes in the central bank's policy rates impact the real economy—such as lending rates, investment, consumption, and overall economic growth—through the banking and financial system. The article underlines RBI's current focus on strengthening monetary policy transmission by using structural reforms, improving credit channels and regulations, which is central to ensuring policy effectiveness in India's complex economy.
2. Inflation projection for FY26 was sharply lowered to 2.6%, citing moderation in food prices and GST reforms, while GDP growth forecast was revised upwards to 6.8% for 2025-26, backed by strong domestic consumption and investment.
3. RBI’s approach emphasizes supporting economic growth through structural reforms, improved credit channels, and regulatory strength rather than relying purely on temporary rate cuts.
4. Bank credit growth has slowed, but non-bank finance is helping offset this moderation, and RBI is opening new avenues for credit and infrastructure funding.
5. The overall policy balances price stability with growth imperatives and keeps the door open for future rate adjustments if warranted by macroeconomic conditions; key focus remains robust monetary policy transmission Key Term: Monetary Policy Transmission
Monetary Policy Transmission is the process by which changes in the central bank's policy rates impact the real economy—such as lending rates, investment, consumption, and overall economic growth—through the banking and financial system. The article underlines RBI's current focus on strengthening monetary policy transmission by using structural reforms, improving credit channels and regulations, which is central to ensuring policy effectiveness in India's complex economy.
UPSC GS Economy (GS 3) by CA Rahul Kumar
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1. The RBI Monetary Policy Committee kept the repo rate unchanged at 5.5% for the second consecutive session and maintained a ‘neutral’ policy stance, focusing on balancing growth with price stability amid global uncertainties and recent GST reforms.
2. The RBI sharply revised its inflation projection for FY26 down to 2.6% (from 3.1% earlier), citing factors like good monsoon, lower food prices, and GST rate rationalization.
3. India’s GDP growth forecast for 2025-26 was raised to 6.8%, driven by robust domestic demand, increased investment flows, a favorable monsoon, and supportive government policies.
4. The central bank emphasized the need for structural reforms—such as rationalizing regulations and improving credit compliance—over temporary rate cuts, and reiterated its commitment to prudent macroeconomic management and financial stability.
5. RBI highlighted the importance of monitoring external trade dynamics and rupee movements, assuring continued flexibility and readiness to act in response to changing macroeconomic conditions.
Key Term: Policy Stance
A ‘neutral policy stance’ refers to the RBI’s approach of remaining flexible and non-committal toward either increasing or decreasing rates in response to evolving inflation and growth signals. This enables timely interventions while promoting macroeconomic stability.
2. The RBI sharply revised its inflation projection for FY26 down to 2.6% (from 3.1% earlier), citing factors like good monsoon, lower food prices, and GST rate rationalization.
3. India’s GDP growth forecast for 2025-26 was raised to 6.8%, driven by robust domestic demand, increased investment flows, a favorable monsoon, and supportive government policies.
4. The central bank emphasized the need for structural reforms—such as rationalizing regulations and improving credit compliance—over temporary rate cuts, and reiterated its commitment to prudent macroeconomic management and financial stability.
5. RBI highlighted the importance of monitoring external trade dynamics and rupee movements, assuring continued flexibility and readiness to act in response to changing macroeconomic conditions.
Key Term: Policy Stance
A ‘neutral policy stance’ refers to the RBI’s approach of remaining flexible and non-committal toward either increasing or decreasing rates in response to evolving inflation and growth signals. This enables timely interventions while promoting macroeconomic stability.
UPSC GS Economy (GS 3) by CA Rahul Kumar
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1. RBI Governor Sanjay Malhotra stated that global risks such as trade tensions, tariffs, and financial volatility could slow growth, but domestic structural reforms (notably GST rationalisation) and a strong monsoon are expected to offset these headwinds.
2. The RBI raised its FY26 GDP growth projection from 6.5% to 6.8% based on sustained domestic economic momentum, excellent kharif sowing, strong rural demand, buoyant services sector, and steady employment.
3. India’s real GDP grew by 7.8% in Q1 2025, the highest in five quarters, while Gross Value Added (GVA) rose 7.6%, with high-frequency indicators showing continued momentum into Q2.
4. A comfortable monsoon, good reservoir levels, and healthy agriculture support positive outlook for both rural and urban consumption; rising capacity utilization and improved financial conditions are expected to boost investment further.
5. Despite resilience in domestic drivers, the RBI recognises that external vulnerabilities—like persistent global trade and geopolitical challenges—mean prudent macroeconomic management and flexibility are essential.
Key Term: Growth-Inflation Tradeoff
The “growth-inflation tradeoff” refers to policymakers’ challenge of supporting economic growth without igniting inflation. RBI’s current policy seeks to maintain this balance—leveraging domestic strengths and reforms to drive growth while ensuring inflation remains comfortably within target levels
2. The RBI raised its FY26 GDP growth projection from 6.5% to 6.8% based on sustained domestic economic momentum, excellent kharif sowing, strong rural demand, buoyant services sector, and steady employment.
3. India’s real GDP grew by 7.8% in Q1 2025, the highest in five quarters, while Gross Value Added (GVA) rose 7.6%, with high-frequency indicators showing continued momentum into Q2.
4. A comfortable monsoon, good reservoir levels, and healthy agriculture support positive outlook for both rural and urban consumption; rising capacity utilization and improved financial conditions are expected to boost investment further.
5. Despite resilience in domestic drivers, the RBI recognises that external vulnerabilities—like persistent global trade and geopolitical challenges—mean prudent macroeconomic management and flexibility are essential.
Key Term: Growth-Inflation Tradeoff
The “growth-inflation tradeoff” refers to policymakers’ challenge of supporting economic growth without igniting inflation. RBI’s current policy seeks to maintain this balance—leveraging domestic strengths and reforms to drive growth while ensuring inflation remains comfortably within target levels
UPSC GS Economy (GS 3) by CA Rahul Kumar
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1. The Reserve Bank of India (RBI) announced that banks can now fund mergers and acquisitions (M&As) by Indian corporates, ending a longstanding ban and enabling greater corporate consolidation and capital market activity.
2. Indian banks and their overseas branches are allowed to lend in Indian rupees to residents of neighbouring countries like Bhutan, Nepal, and Sri Lanka, strategically promoting the rupee’s international use and enhancing regional economic ties.
3. The lending limit for IPO financing is raised from ₹10 lakh to ₹25 lakh per person, and the limit for loans against shares hikes from ₹25 lakh to ₹1 crore per individual, aiming to boost liquidity and participation in capital markets.
4. RBI also proposed removing the regulatory ceiling on lending against listed debt securities and consolidating compliance rules to make credit access more flexible, signaling a more liberal, globally connected financial system.
5. These reforms highlight RBI’s intention to deepen Indian financial markets, facilitate easier credit for corporates and individuals, and make the rupee a more widely accepted currency in cross-border transactions and trade settlements.
Key Term: Internationalisation of the Rupee
Internationalisation of the rupee refers to policy measures and market reforms aimed at promoting the widespread use of INR in cross-border transactions, trade settlements, and as a global reserve currency, enhancing India’s financial influence globally.
2. Indian banks and their overseas branches are allowed to lend in Indian rupees to residents of neighbouring countries like Bhutan, Nepal, and Sri Lanka, strategically promoting the rupee’s international use and enhancing regional economic ties.
3. The lending limit for IPO financing is raised from ₹10 lakh to ₹25 lakh per person, and the limit for loans against shares hikes from ₹25 lakh to ₹1 crore per individual, aiming to boost liquidity and participation in capital markets.
4. RBI also proposed removing the regulatory ceiling on lending against listed debt securities and consolidating compliance rules to make credit access more flexible, signaling a more liberal, globally connected financial system.
5. These reforms highlight RBI’s intention to deepen Indian financial markets, facilitate easier credit for corporates and individuals, and make the rupee a more widely accepted currency in cross-border transactions and trade settlements.
Key Term: Internationalisation of the Rupee
Internationalisation of the rupee refers to policy measures and market reforms aimed at promoting the widespread use of INR in cross-border transactions, trade settlements, and as a global reserve currency, enhancing India’s financial influence globally.
UPSC GS Economy (GS 3) by CA Rahul Kumar
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1. The Government of India has notified the creation of the Online Gaming Authority of India, a new national regulator under the IT Ministry (MeitY), empowered with civil court powers to oversee online gaming, ensure compliance, and enforce the ban on money games involving stakes, wagers, or cash-convertible winnings.
2. The Authority will maintain a National Registry of Online Social Games and E-sports, register all online games, and issue five-year certificates. It can inspect records, impose penalties, cancel registrations, and direct banks to block unlawful transactions.
3. Any online game that involves staking money, wagers, or cash-convertible winnings will be declared an "online money game" and is now strictly prohibited; platforms, advertisers, and financial intermediaries facilitating such games face severe penalties, including imprisonment and heavy fines.
4. The rules introduce a granular framework for the registration and regulation of games, instant corrective actions against violations (including takedowns and blacklistings), and a 180-day transition period for refunding user funds collected prior to the Act.
5. Esports and online social (non-wager) games will be promoted under the Sports and I&B ministries, while non-compliance with the new regulatory regime can result in suspension/cancellation of registration and prosecution under cognizable and non-bailable offences.
Key Term: Online Money Game
An “online money game” is any online game that involves monetary stakes, wagers, or winnings that can be converted to cash. Under the new regulatory regime, all such games are classified as prohibited and will be subject to strict enforcement and penalties to prevent illegal gambling and protect consumers
2. The Authority will maintain a National Registry of Online Social Games and E-sports, register all online games, and issue five-year certificates. It can inspect records, impose penalties, cancel registrations, and direct banks to block unlawful transactions.
3. Any online game that involves staking money, wagers, or cash-convertible winnings will be declared an "online money game" and is now strictly prohibited; platforms, advertisers, and financial intermediaries facilitating such games face severe penalties, including imprisonment and heavy fines.
4. The rules introduce a granular framework for the registration and regulation of games, instant corrective actions against violations (including takedowns and blacklistings), and a 180-day transition period for refunding user funds collected prior to the Act.
5. Esports and online social (non-wager) games will be promoted under the Sports and I&B ministries, while non-compliance with the new regulatory regime can result in suspension/cancellation of registration and prosecution under cognizable and non-bailable offences.
Key Term: Online Money Game
An “online money game” is any online game that involves monetary stakes, wagers, or winnings that can be converted to cash. Under the new regulatory regime, all such games are classified as prohibited and will be subject to strict enforcement and penalties to prevent illegal gambling and protect consumers
UPSC GS Economy (GS 3) by CA Rahul Kumar
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1. The article highlights a paradox in India's GDP data: while real GDP growth consistently exceeds expectations (e.g., 7.8% in Q1 2025), policymakers frequently pursue demand-boosting interventions, such as tax cuts and consumption incentives, to stimulate the economy.
2. India's real GDP growth in recent quarters appears robust, yet there is a notable gap between strong headline growth and weaker private consumption trends, as evidenced by government actions to raise spending limits and boost demand.
3. The article explains the difference between real GDP and nominal GDP: nominal GDP includes inflation effects, while real GDP is inflation-adjusted. In recent years, nominal GDP growth has lagged behind real GDP due to slowing inflation (GDP deflator), creating perceived economic strength even when underlying demand is soft.
4. Policymakers rely on nominal GDP as a base for fiscal analysis (tax policies, deficits, company earnings), which makes nominal GDP a more sensitive measure to short-term fluctuations (like tax changes or inflation anomalies), sometimes inviting skepticism about the true strength of the economy.
5. The central insight is that despite strong real GDP numbers, weak private consumption and a reliance on policy support signal underlying economic vulnerabilities—suggesting the economy may not be as strong as headline growth rates suggest.
Key Term: GDP Deflator
The GDP deflator is a price index used to convert nominal GDP into real GDP by removing the effects of inflation. It is crucial because a low deflator artificially inflates real GDP growth figures, leading to a disconnect between measured growth and people's real economic experiences.
2. India's real GDP growth in recent quarters appears robust, yet there is a notable gap between strong headline growth and weaker private consumption trends, as evidenced by government actions to raise spending limits and boost demand.
3. The article explains the difference between real GDP and nominal GDP: nominal GDP includes inflation effects, while real GDP is inflation-adjusted. In recent years, nominal GDP growth has lagged behind real GDP due to slowing inflation (GDP deflator), creating perceived economic strength even when underlying demand is soft.
4. Policymakers rely on nominal GDP as a base for fiscal analysis (tax policies, deficits, company earnings), which makes nominal GDP a more sensitive measure to short-term fluctuations (like tax changes or inflation anomalies), sometimes inviting skepticism about the true strength of the economy.
5. The central insight is that despite strong real GDP numbers, weak private consumption and a reliance on policy support signal underlying economic vulnerabilities—suggesting the economy may not be as strong as headline growth rates suggest.
Key Term: GDP Deflator
The GDP deflator is a price index used to convert nominal GDP into real GDP by removing the effects of inflation. It is crucial because a low deflator artificially inflates real GDP growth figures, leading to a disconnect between measured growth and people's real economic experiences.
UPSC GS Economy (GS 3) by CA Rahul Kumar
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- The Reserve Bank of India (RBI) has taken significant steps to boost liquidity and deepen participation in Indian capital markets by removing the regulatory ceiling on loans against listed debt securities and raising the individual loan limit against shares from ₹20 lakh to ₹1 crore.
- The RBI also increased the IPO financing limit for retail investors from ₹10 lakh to ₹25 lakh, aiming to widen access to high-profile offerings and draw more retail and institutional participation in the primary markets.
- These measures are intended to counter global and domestic headwinds that have led to sluggish equity markets, outflows by foreign investors, and declining market confidence, thereby ensuring a steady flow of credit and stimulating demand.
- The withdrawal of old lending curbs on large borrowers, and new frameworks for lending against Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), are expected to provide banks with expanded secured lending opportunities and foster corporate consolidation.
- The RBI emphasized that while these reforms will enhance market liquidity, support IPO demand, and help banks and investors, systemic risks will still be managed with macroprudential safeguards to avoid market excesses and maintain stability.
Key Term : Financial Intermediation
Financial intermediation refers to the process by which financial institutions like banks mobilize savings from retail and institutional participants and channel them into capital markets or lending, thereby underpinning economic growth and stability.
- The RBI also increased the IPO financing limit for retail investors from ₹10 lakh to ₹25 lakh, aiming to widen access to high-profile offerings and draw more retail and institutional participation in the primary markets.
- These measures are intended to counter global and domestic headwinds that have led to sluggish equity markets, outflows by foreign investors, and declining market confidence, thereby ensuring a steady flow of credit and stimulating demand.
- The withdrawal of old lending curbs on large borrowers, and new frameworks for lending against Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), are expected to provide banks with expanded secured lending opportunities and foster corporate consolidation.
- The RBI emphasized that while these reforms will enhance market liquidity, support IPO demand, and help banks and investors, systemic risks will still be managed with macroprudential safeguards to avoid market excesses and maintain stability.
Key Term : Financial Intermediation
Financial intermediation refers to the process by which financial institutions like banks mobilize savings from retail and institutional participants and channel them into capital markets or lending, thereby underpinning economic growth and stability.
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UPSC GS Economy (GS 3) by CA Rahul Kumar
https://youtu.be/gdhWTFYeMqo?si=HMRKy-cjZ97grSWe
Key Takeaways from “UPSC 2026 Strategy Video for next 3 months by Rahul Kumar Sir” :
- No shortcuts: UPSC success requires consistent, strategic preparation, not hope or shortcuts.
- 3-month plan is ‘make-or-break’: October–December 2025 are crucial for building a strong foundation before the final stretch of the exam cycle.
- Common struggles: Avoid perfectionism and excessive reliance on multiple sources. Focus on quality, but don’t let it lead to getting stuck or skipping topics.
- Balance subjects: Smart division between GS, optional, CSAT, and current affairs, based on your strengths/weaknesses and stage of preparation.
- Priority setting: Every aspirant should set monthly priorities (e.g., October: optional focus, November: more GS/exclusive subjects, December: Prelims core, etc.) and adjust as per personal progress.
- Timetable recommendation: 10 hours daily for full-time aspirants, with tasks split between optional, GS, and revision. Working aspirants can average 6–7 hours (quality matters more than quantity).
- Revision and mock/test series: Focus on deep mastering of limited sources. Revise and test yourself regularly for retention and improvement.
- Notes-making tips: Only make crisp notes after 3rd/4th reading, focus on concepts you find hard or complex, and don’t blindly copy toppers’ notes.
- Answer-writing: By Prelims, aim to write 300–400 Mains answers. Practice previous year questions and structured answer writing (150–250 words in 7–9 minutes).
- Health & mental well-being: Take meaningful breaks, listen to instrumental music, exercise daily (10–15 min), and practice gratitude/meditation to relieve UPSC stress, boost consistency, and preserve energy.
- Productivity hacks: Use Pomodoro technique (25–50 min study blocks + 5–10 min breaks), deep breathing, and focus/concentration boosters.
- Current affairs: Beginners are advised to use monthly magazines for coverage instead of spending hours on daily newspapers.
- Don’t aim for 100%: 70–80% coverage is often sufficient; leave easy/low-yield topics for later if pressed for time.
- Psychological reset: Treat past prep as surplus; start afresh with new energy and belief, regardless of past setbacks or slow progress.
Following this 3-month, customized strategy and mind-set can help aspirants stay focused, motivated, and resilient for UPSC 2026.
- No shortcuts: UPSC success requires consistent, strategic preparation, not hope or shortcuts.
- 3-month plan is ‘make-or-break’: October–December 2025 are crucial for building a strong foundation before the final stretch of the exam cycle.
- Common struggles: Avoid perfectionism and excessive reliance on multiple sources. Focus on quality, but don’t let it lead to getting stuck or skipping topics.
- Balance subjects: Smart division between GS, optional, CSAT, and current affairs, based on your strengths/weaknesses and stage of preparation.
- Priority setting: Every aspirant should set monthly priorities (e.g., October: optional focus, November: more GS/exclusive subjects, December: Prelims core, etc.) and adjust as per personal progress.
- Timetable recommendation: 10 hours daily for full-time aspirants, with tasks split between optional, GS, and revision. Working aspirants can average 6–7 hours (quality matters more than quantity).
- Revision and mock/test series: Focus on deep mastering of limited sources. Revise and test yourself regularly for retention and improvement.
- Notes-making tips: Only make crisp notes after 3rd/4th reading, focus on concepts you find hard or complex, and don’t blindly copy toppers’ notes.
- Answer-writing: By Prelims, aim to write 300–400 Mains answers. Practice previous year questions and structured answer writing (150–250 words in 7–9 minutes).
- Health & mental well-being: Take meaningful breaks, listen to instrumental music, exercise daily (10–15 min), and practice gratitude/meditation to relieve UPSC stress, boost consistency, and preserve energy.
- Productivity hacks: Use Pomodoro technique (25–50 min study blocks + 5–10 min breaks), deep breathing, and focus/concentration boosters.
- Current affairs: Beginners are advised to use monthly magazines for coverage instead of spending hours on daily newspapers.
- Don’t aim for 100%: 70–80% coverage is often sufficient; leave easy/low-yield topics for later if pressed for time.
- Psychological reset: Treat past prep as surplus; start afresh with new energy and belief, regardless of past setbacks or slow progress.
Following this 3-month, customized strategy and mind-set can help aspirants stay focused, motivated, and resilient for UPSC 2026.
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Key details of RBI's new payment authentication rules starting from April 2026 are:
- RBI is moving beyond SMS OTP for digital payment authentication to strengthen security and reduce fraud risk. OTP via SMS has been the backbone of online transaction authentication but has vulnerabilities like SIM swap fraud and OTP interception.
- From April 2026, all digital payment transactions must have at least two independent factors of authentication. These factors fall into three categories:
1. Something you know (password, PIN)
2. Something you have (device token, cryptographic token, app-based token, smart card)
3. Something you are (biometrics like fingerprint, face or iris scan)
- At least one of the authentication factors must be dynamic and unique to the transaction, like OTP or a one-time cryptographic token.
- Small-value or offline transactions may get exceptions to avoid excessive hassle.
- Payment service providers can add more layers of security based on risk analysis (e.g., unusual transaction amount, different device or location).
- Additional authentication is mandatory for non-recurring, cross-border card-not-present transactions starting October 1, 2026. Recurring transactions allow risk-based authentication.
- Banks and payment providers must comply with these rules or bear liability for any fraud losses. If a fraud occurs due to non-compliance, the bank is liable to reimburse the customer up to ₹2 lakh.
- The move aligns India with global best practices like PSD2 and FIDO authentication standards, enhancing trust in both domestic and international digital payments.
- This will require banks to upgrade their technology infrastructure but will reduce fraud, increase customer options beyond OTP, and boost confidence in digital payments.
- SMS OTP is not banned but will no longer be the sole authentication method; newer options like biometrics and device tokens gain importance.
This regulation aims to future-proof India's digital payment ecosystem by balancing security, customer convenience, and compliance with international standards.
- RBI is moving beyond SMS OTP for digital payment authentication to strengthen security and reduce fraud risk. OTP via SMS has been the backbone of online transaction authentication but has vulnerabilities like SIM swap fraud and OTP interception.
- From April 2026, all digital payment transactions must have at least two independent factors of authentication. These factors fall into three categories:
1. Something you know (password, PIN)
2. Something you have (device token, cryptographic token, app-based token, smart card)
3. Something you are (biometrics like fingerprint, face or iris scan)
- At least one of the authentication factors must be dynamic and unique to the transaction, like OTP or a one-time cryptographic token.
- Small-value or offline transactions may get exceptions to avoid excessive hassle.
- Payment service providers can add more layers of security based on risk analysis (e.g., unusual transaction amount, different device or location).
- Additional authentication is mandatory for non-recurring, cross-border card-not-present transactions starting October 1, 2026. Recurring transactions allow risk-based authentication.
- Banks and payment providers must comply with these rules or bear liability for any fraud losses. If a fraud occurs due to non-compliance, the bank is liable to reimburse the customer up to ₹2 lakh.
- The move aligns India with global best practices like PSD2 and FIDO authentication standards, enhancing trust in both domestic and international digital payments.
- This will require banks to upgrade their technology infrastructure but will reduce fraud, increase customer options beyond OTP, and boost confidence in digital payments.
- SMS OTP is not banned but will no longer be the sole authentication method; newer options like biometrics and device tokens gain importance.
This regulation aims to future-proof India's digital payment ecosystem by balancing security, customer convenience, and compliance with international standards.
*Rs ₹100 coin released to mark 100 years of Rashtriya Swayamsevak Sangh (RSS)* Associated Controversy
- On October 1, 2025, Prime Minister Narendra Modi released a ₹100 commemorative coin and a postage stamp to honor the centenary of RSS. For the first time in Indian currency history, the coin depicts Bharat Mata (Mother India) alongside a lion symbolizing strength, and three RSS volunteers showing devotion before Bharat Mata. The motto "Everything is dedicated to the nation, nothing is mine" is inscribed.
- The postage stamp features the 1963 Republic Day parade where RSS volunteers participated, highlighting RSS's social service activities such as relief work.
- The government praised RSS as an example of sacrifice, selfless service, and nationalist spirit contributing to society.
- The release sparked controversy and criticism from opposition parties like Congress and CPIM. Critics argue RSS opposes secular constitutional values, promotes a Hindu nationalist ideology through the Bharat Mata imagery, and that Indian currency should not promote organizations with ideological leanings.
- Some opposition voices questioned RSS's role in India's freedom struggle, accusing the government of rewriting history. RSS was banned briefly after Mahatma Gandhi's assassination by Nathuram Godse (linked to RSS), but the ban was lifted after RSS formally adopted a non-political, cultural role.
- RSS was founded in 1925 by Dr. Keshav Baliram Hedgewar to build a disciplined Hindu society resisting colonial rule and social divisions. It has expanded considerably, especially post-2014 under the BJP government, with over 83,000 branches as of recent data.
- RSS emphasizes discipline, cultural nationalism, and indirect political influence rather than direct politics. It claims contributions in relief during wars and emergencies, underground resistance during the Emergency period, and ideology nurturing through affiliated organizations like ABVP.
- The coin and stamp release reflects strong symbolism for RSS supporters but ignites debate between cultural nationalism and secular constitutionalism perspectives.
- On October 1, 2025, Prime Minister Narendra Modi released a ₹100 commemorative coin and a postage stamp to honor the centenary of RSS. For the first time in Indian currency history, the coin depicts Bharat Mata (Mother India) alongside a lion symbolizing strength, and three RSS volunteers showing devotion before Bharat Mata. The motto "Everything is dedicated to the nation, nothing is mine" is inscribed.
- The postage stamp features the 1963 Republic Day parade where RSS volunteers participated, highlighting RSS's social service activities such as relief work.
- The government praised RSS as an example of sacrifice, selfless service, and nationalist spirit contributing to society.
- The release sparked controversy and criticism from opposition parties like Congress and CPIM. Critics argue RSS opposes secular constitutional values, promotes a Hindu nationalist ideology through the Bharat Mata imagery, and that Indian currency should not promote organizations with ideological leanings.
- Some opposition voices questioned RSS's role in India's freedom struggle, accusing the government of rewriting history. RSS was banned briefly after Mahatma Gandhi's assassination by Nathuram Godse (linked to RSS), but the ban was lifted after RSS formally adopted a non-political, cultural role.
- RSS was founded in 1925 by Dr. Keshav Baliram Hedgewar to build a disciplined Hindu society resisting colonial rule and social divisions. It has expanded considerably, especially post-2014 under the BJP government, with over 83,000 branches as of recent data.
- RSS emphasizes discipline, cultural nationalism, and indirect political influence rather than direct politics. It claims contributions in relief during wars and emergencies, underground resistance during the Emergency period, and ideology nurturing through affiliated organizations like ABVP.
- The coin and stamp release reflects strong symbolism for RSS supporters but ignites debate between cultural nationalism and secular constitutionalism perspectives.
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