The Reserve Bank of India has proposed a mandatory one-hour delay on digital account-to-account transfers exceeding ₹10,000, aiming to reduce payment fraud by giving customers time to cancel suspicious transactions.
Outlined in a discussion paper released on April 9, the measure is designed to counter the growing cases of authorised push payment(APP) fraud, where victims are tricked into initiating transfers themselves. The delay would apply across fast payment systems such as the Unified Payments Interface but would exclude merchant payments, which already include dispute resolution mechanisms.
During the proposed cooling period, funds would be provisionally debited from the sender’s account and held for up to one hour before being credited to the recipient. This buffer would allow customers to revoke transactions and enable banks to monitor unusual patterns. Low-value transfers below ₹10,000 would remain instantaneous to avoid disruptions in regular payments.
The RBI has also suggested additional protections for vulnerable users. Transfers above ₹50,000 made by senior citizens aged 70 or more, or by persons with disabilities, may require approval from a trusted nominee before completion. To prevent misuse of mule accounts, the central bank aims to restrict annual credits to ₹25 lakh for accounts lacking enhanced due diligence, with excess funds held as temporary credits pending verification.
In addition, a “universal kill switch” has been proposed, allowing users to immediately disable all digital payment channels such as UPI, cards, and net banking if fraud is suspected.
The central bank has invited public and industry feedback on the proposals until May 8. After the consultation period, the RBI will consider issuing formal guidelines. The move follows the rollout of a revised two-factor authentication framework on April 1, underscoring the regulator’s push to strengthen digital payment security.
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