Bankers Oppose RBI's 1-Hour Lag On Online Transfers Over Rs 10,000

Bankers have submitted adverse feedback on the Reserve Bank of India's proposed 1-hour lag on online transactions of over Rs 10,000 ticket size, saying while the proposed 1-hour lag is acceptable, Rs 10,000 limit should be hiked to at least Rs 25,000, multiple bankers told NDTV Profit.

"The Rs 10,000 limit is too low for emerging to premium category customers. The RBI should hike the limit to at least Rs 25,000. This could slow down the growth in UPI transactions. Implementing a kill switch will be tough for a few less tech savvy banks," a senior public sector banker said, adding that the regulator should also exclude tax and emergency case prompted transactions from the regulatory purview.

Last month, the RBI launched a discussion paper proposing four key measures to curb cyber frauds. These included: I) lagged credit for high value push payment transactions, II) making an additional authentication layer by trusted person for high-value transactions III) allowing only accounts with sufficient review to receive large credits and IV) applying customer-induced controls for high value digital transactions. 

Payments industry executives say the RBI's proposal allowing only accounts with sufficient review to receive large credits of over Rs 25 lakh is impractical. Fraudsters may create multiple accounts with lower than Rs 25 lakh float to surpass this measure, they say.

Digital-fraud volumes rose to 28 lakh in 2025, higher than 24 lakh in 2024. Value wise, digital fraud value increased to Rs 22,931 crore in 2025 from Rs 22,848 crore in 2024.

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