New Delhi: The Reserve Bank of India is considering a proposal to introduce a one-hour delay for certain high-value digital transactions, including UPI payments, in a bid to tackle the growing number of online fraud cases.
The move is aimed at giving users a short window to review and cancel transactions if they suspect fraud or realise a mistake.
How the proposed delay will work
Under the proposal, account-to-account transfers above ₹10,000—particularly through UPI—may no longer be processed instantly. Instead, such transactions could be held for up to one hour before reaching the recipient.
During this period, the amount will be debited from the sender’s account but temporarily withheld. This buffer is designed to allow users to stop the transaction if needed.
Banks are also expected to use this time to run additional checks. If a transaction appears unusual—such as sending a large sum to a new or unverified account—the user may receive an alert asking for reconfirmation.
Focus on tackling high-value fraud
The proposal comes in response to a sharp increase in digital fraud across the country. According to RBI data, transactions above ₹10,000 account for about 45% of fraud cases by number but nearly 98.5% of the total value lost.
This makes high-value transactions a major area of concern, prompting the central bank to explore safeguards that balance speed with security.
Extra safeguards for vulnerable users
The RBI has also proposed additional protection for vulnerable groups, including senior citizens and persons with disabilities.
For users aged 70 and above, transactions exceeding ₹50,000 may require approval from a designated “trusted person.” This step is intended to reduce losses from social engineering scams, where individuals are manipulated into transferring money themselves.
Users will have the option to opt out of this feature, though it may involve a waiting period and risk warnings.
Minimal impact on daily transactions
To ensure convenience is not significantly affected, the RBI has indicated that routine payments will likely remain outside the scope of the delay.
These include:
- Merchant payments
- Automatic transactions such as EMIs and subscriptions
- Cheque payments
Additionally, users may be allowed to “whitelist” trusted beneficiaries, enabling instant transfers to those accounts without any delay.
Public feedback invited
At present, the proposal is under consultation. The RBI has invited feedback from stakeholders and the public until May 8 before taking a final decision.
Conclusion
If implemented, the proposed delay could mark a significant shift in India’s digital payment ecosystem. While it may slightly slow down high-value transfers, the added layer of security could help prevent fraud and protect users’ funds in an increasingly digital economy.