The Reserve Bank of India has proposed new measures to strengthen digital payment security as online fraud cases rise sharply across the country. The plan includes a one-hour delay for certain transactions, added safeguards for vulnerable users, and stricter monitoring of suspicious accounts.
What Are the New Plans for High-Value UPI Transactions?
The RBI has suggested introducing a one-hour delay for account-to-account transfers above ₹10,000, especially those made through the Unified Payments Interface. In this system, the money will be temporarily debited from the sender’s account but will not reach the recipient immediately.
This delay will act as a safety window, allowing users to cancel the transaction if they realise it is fraudulent. Banks will also use this time to run real-time checks and may send alerts if a transaction looks unusual, asking users to reconfirm before processing.
Why is RBI Introducing Extra Safeguards for Senior Citizens?
The RBI has proposed additional protection for elderly and differently-abled users, who are often targeted by fraudsters. Customers aged 70 and above, along with persons with disabilities, may need to route transactions above ₹50,000 through a trusted person for added verification.
However, users will still have the option to opt out of this safeguard after a cooling-off period and proper risk disclosure.
What is the ‘Kill Switch’ Feature Proposed by RBI?
To give users more control, the RBI has proposed a “kill switch” that would allow customers to instantly disable all digital transactions if they suspect fraud. Along with this, banks may introduce transaction limits across different payment modes. Reactivating services after using the kill switch would require strict verification to ensure account safety.
How Will RBI Monitor Suspicious Bank Accounts?
The central bank has also focused on accounts that may be used for illegal activities. It plans to closely track accounts receiving unusually high deposits, especially those suspected to be mule accounts. Such accounts may face limits on annual inflows unless additional verification is completed. Funds beyond the set limits could be temporarily held until they are verified.
Why is RBI Taking Action Against Rising Digital Fraud?
The move comes after a sharp increase in digital fraud cases in India. Data shows that reported cases have risen more than ten times between 2021 and 2025, while total losses have jumped nearly forty times to about ₹230 billion.
Many scams involve users being tricked into transferring money themselves through phishing calls, fake customer care services, or deepfake technology. The proposed delay is aimed at giving users time to rethink and stop such payments.
Which Transactions Will Be Exempt from RBI’s New Rules?
The RBI has clarified that regular transactions will not be affected. Merchant payments, recurring payments like EMIs and subscriptions, and cheque-based transfers are likely to remain exempt, as they already have established verification systems.
How Will RBI Balance Speed and Security in Digital Payments?
India’s digital payments system, driven by platforms like UPI, is known for speed and ease of use. However, the RBI’s proposal shows a shift towards stronger security for high-value transactions.
The central bank has invited public feedback on these proposals until May 8. After reviewing the responses, it will issue final guidelines. If implemented, these changes could significantly improve the safety of digital payments while maintaining convenience for users.
