The Reserve Bank of India (RBI) is considering a proposal that may introduce a delay of up to one hour for certain large digital payments before they are completed, Economic Times reported. This proposal comes as reported losses from online frauds crossed Rs 22,000 crore last year.
According to the report, in discussion paper released by the RBI's Department of Payment and Settlement Systems, four different measures have been suggested to address the sharp rise in digital payment fraud.
According to data from the National Cyber Crime Reporting Portal, reported fraud cases increased from 2.6 lakh cases involving Rs 551 crore in 2021 to 28 lakh cases involving Rs 22,931 crore in 2025.
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Under the main proposal, banks may be required to delay account-to-account transfers above Rs 10,000 for one hour at the sender's end before processing them.
During this time, customers would have the option to cancel the transaction. If a transaction is flagged as suspicious, banks may also ask the sender to confirm the payment again before proceeding.
The proposal specifies that certain types of transactions, including merchant payments, e-mandates, National Automated Clearing House (NACH) transactions, and cheque payments, would not be affected by this delay. Customers may also be allowed to whitelist certain recipients so that payments to them are not delayed.
The RBI noted that transactions above Rs 10,000 account for about 45 percent of reported fraud cases by volume but nearly 98.5 percent of the total fraud value. This has been cited as the reason for choosing this threshold.
The central bank also observed that most digital fraud cases do not involve hacking or system breaches. Instead, fraudsters often use methods such as impersonation, social engineering, and pressure tactics to make individuals transfer money themselves.
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These cases are referred to as Authorised Push Payment (APP) fraud. The RBI said that once such payments are made through instant systems like UPI or IMPS, it becomes very difficult to recover the money.
In the discussion paper, the RBI stated, “fraudsters often create a sense of urgency and keep continuous psychological pressure on victims to stop them from thinking clearly. Introducing a delay at the sender's end can interrupt this pressure and reduce the chances of fraud.”
Apart from the delay proposal, three other measures have also been suggested. One proposal recommends that individuals aged 70 years and above, as well as persons with disabilities, should nominate a trusted person.
For transactions above Rs 50,000, authentication from this trusted person would be required. The RBI noted that this threshold covers nearly 92 percent of the fraud value reported.
Another proposal suggests placing an annual cap of Rs 25 lakh on total credits received in individual and small business accounts. Any amount above this limit would be held as “shadow credit” and would only be accessible after the account holder provides justification to the bank. If no explanation is given within 30 days, the amount would be returned to the sender.
The fourth proposal involves introducing a “kill switch” feature that would allow customers to instantly disable all digital payment services linked to their account in a single step.
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The RBI also acknowledged that introducing a delay in payments may go against the basic principle of instant digital transactions and could cause confusion among users.
It further noted that fraudsters may try to bypass safeguards by convincing users to whitelist certain transactions.
The central bank has invited feedback from stakeholders on these proposals. Comments can be submitted through the RBI's Connect 2 Regulate portal until May 8, 2026. After reviewing the responses, the RBI may consider issuing draft guidelines.
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