Now Reading: RBI proposes 1-hour delay for digital payments above Rs10,000
-
01
RBI proposes 1-hour delay for digital payments above Rs10,000
The Reserve Bank of India has proposed a one-hour delay in the crediting of digital payments above Rs10,000 to combat rising fraud. In a discussion paper, the central bank noted that 2.8…
The Reserve Bank of India has proposed a one-hour delay in the crediting of digital payments above Rs10,000 to combat rising fraud. In a discussion paper, the central bank noted that 2.8 million frauds were reported in 2025, with losses totalling Rs230 crore. Transactions over Rs10,000 accounted for 45% of fraud cases by volume but 98.5% of the value.
The RBI said most frauds involve social engineering, coercion or impersonation, where victims themselves initiate and authenticate transactions. It suggested measures including additional authentication for transactions above Rs50,000 and a 'kill switch' to disable all transactions if fraud is suspected. The public can submit comments on the paper until May 8.
Indian Opinion Analysis
The proposal targets authorised push payment fraud, a growing problem as India's UPI ecosystem expands. Under the framework, a defrauded user could cancel the transaction within the one-hour 'golden hour'. The RBI's suggestion of enhanced due diligence for accounts receiving over Rs2.5 lakh annually signals tighter scrutiny of dormant or lightly monitored accounts. The success of the measure will depend on how banks implement the provisional debit and cancellation process without slowing legitimate payments. The next step is the public consultation deadline of May 8, after which the RBI will finalise its guidelines.
Source: khaleejtimes.com
This brief was synthesised by AI from the source linked above.
