The RBI has proposed a one-hour delay on digital payments above Rs 10,000, aiming to curb the rising cases of online financial fraud in India. The move is part of a broader strategy to strengthen the security of digital transactions, particularly those involving account-to-account transfers through platforms like UPI and IMPS.
Key Highlights
- RBI proposes one hour delay for digital payments above Rs 10000 to prevent rising fraud cases.
- Additional authentication and kill switch features aim to enhance digital payment security across India.
The proposed one-hour delay will primarily apply to authorised push payment (APP) frauds, where customers are manipulated into transferring money themselves under false pretences. By introducing a cooling-off period, the RBI aims to give users time to review and cancel suspicious transactions while enabling banks to detect anomalies before funds are withdrawn.
In addition to the one-hour delay, the RBI has suggested enhanced security measures for high-value transactions. Payments exceeding Rs 50,000 may require an additional authentication layer, particularly for vulnerable groups such as senior citizens and persons with disabilities. Under this framework, a trusted person verification system could be introduced to reduce the risk of coercion-based frauds.
To further tackle the misuse of mule bank accounts, the central bank has proposed capping annual credits at Rs 25 lakh for certain accounts unless enhanced due diligence is conducted. Transactions exceeding this threshold would be subject to additional scrutiny before funds are released, helping prevent fraudulent fund transfers.
Also Read: RBI 2FA Rollout Begins Today, Strengthens Digital Payment Security
The RBI has also recommended expanding customer-controlled security features across digital payment platforms, including transaction limits, on/off controls, and a “kill switch” that allows users to instantly disable all digital transactions in case of suspected fraud. These measures are designed to empower users and enhance real-time fraud prevention.
The proposal comes amid a sharp rise in digital fraud cases in India, driven largely by social engineering tactics such as impersonation, coercion, and deepfake scams, rather than system-level breaches. With fraud incidents and financial losses increasing significantly in recent years, the RBI’s framework proposal signals a shift towards a security-first approach in India’s digital payments ecosystem.
If implemented, these measures could mark a major change in how digital payments operate in India, balancing speed with enhanced safety while addressing emerging cyber fraud risks.
