Regularly making high-value UPI payments? The RBI may introduce a one-hour pause on transfers exceeding ₹10,000 to prevent digital fraud.
Instant UPI transfers have become routine for many Indians, but that speed may soon be tempered. The Reserve Bank of India (RBI) is considering a proposal to introduce a one-hour delay for certain high-value digital transactions as part of efforts to curb rising online fraud.
The idea is straightforward: to give users a brief window to cancel a transaction if something seems suspicious.
How the proposed delay will work
Under the proposal, account-to-account transfers above ₹10,000, particularly via UPI, may no longer be processed instantly, with a one-hour delay before the funds reach the recipient.
During this period, the amount will be debited from the sender’s account but temporarily held back. This buffer is designed to allow users to cancel the transaction if they realise they’ve been scammed or made an error.
Banks will also use this window to carry out background checks. If a transaction appears unusual – such as sending a large sum to a new beneficiary – the user may receive an alert asking for reconfirmation.
If any suspicious activity is detected, the bank may withhold processing the transaction until the sender confirms it again.
Why RBI is planning this change
The central bank’s concern stems from a sharp increase in digital fraud, particularly cases where users are tricked into authorising payments themselves.
According to the RBI, transactions above ₹10,000 make up about 45% of fraud cases by volume but account for nearly 98.5% of the total amount lost, making high-value transfers a major risk area.
By introducing a delay, the central bank aims to add an extra layer of protection without significantly affecting the convenience of digital payments.
Extra layer of security for senior citizens
The proposal also focuses on safeguarding users who are more vulnerable to scams.
For customers aged 70 and above, as well as persons with disabilities, the RBI has proposed an additional layer of verification for high-value transfers above ₹50,000. Such transactions may require approval from a “trusted person.”
The move is aimed at curbing losses from social engineering scams, where fraudsters trick users into transferring money themselves.
At the same time, users may be allowed to opt out of this requirement, though it could involve a waiting period along with risk warnings.
Everyday payments likely to remain unaffected
The RBI has tried to ensure that daily transactions remain smooth. Payments to merchants, automatic debits like EMIs or subscriptions, and cheque payments are likely to be kept outside the delay system.
Users may also be able to ‘whitelist’ trusted recipients, so transfers to them continue without any waiting period.
What comes next
For now, these remain proposals. The RBI has invited public feedback until May 8 and will review the responses before making a final decision.
If implemented, the move could reshape digital payments in India – making some transactions slightly slower but potentially much safer.