RBI Weighs 1-Hour Delay for Large Digital Payments

The Reserve Bank of India (RBI) is exploring a new proposal to introduce a potential one-hour delay for specific large digital payments, as reported losses from online frauds have surpassed Rs 22,000 crore in the past year. This initiative is part of a discussion paper by the RBI's Department of Payment and Settlement Systems, which outlines four measures to tackle the surge in digital payment fraud. The suggested delay would apply to account-to-account transfers exceeding Rs 10,000, offering senders a window to cancel the transaction.

These proposed measures are a response to a sharp increase in reported fraud cases, which escalated dramatically from 2021 to 2025. The RBI noted that while transactions over Rs 10,000 represent a smaller volume, they account for nearly 98.5 percent of the total fraud value. Most digital frauds are identified as Authorised Push Payment (APP) fraud, where fraudsters use social engineering and pressure tactics rather than hacking.

In addition to the payment delay, the RBI is considering requiring authentication from a nominated trusted person for individuals aged 70 and above, or those with disabilities, for transactions over Rs 50,000. Another proposal suggests an annual credit cap of Rs 25 lakh per account, with excess funds held as 'shadow credit' requiring justification. Furthermore, a 'kill switch' feature is proposed, allowing users to instantly disable all digital payment services associated with their account.

The RBI acknowledges that these changes might conflict with the principle of instant transactions and could cause user confusion, with fraudsters potentially exploiting whitelisting options. Feedback from stakeholders is being invited through the RBI's Connect 2 Regulate portal until May 8, 2026, after which draft guidelines may be issued.