The RBI has proposed a key change to India’s digital payments framework to tackle the growing threat of online fraud. In a recent discussion paper, the RBI suggested introducing a mandatory waiting period of up to one hour for fund transfers exceeding Rs 10,000 via UPI and IMPS.
This move by the RBI aims to add an extra layer of protection to real-time transactions, which are often targeted by fraudsters using urgency-driven tactics.
RBI Focuses on Security Without Disrupting Daily Payments
The proposal by the RBI will primarily apply to person-to-person transactions, while payments made to verified merchants are expected to remain unaffected. This ensures that everyday transactions and business payments continue without disruption.
To maintain user convenience, the RBI has also suggested a whitelisting feature. Users will be able to mark trusted beneficiaries, allowing instant transfers to these accounts without any delay. This approach reflects the RBI’s effort to balance safety with ease of use.
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Rising Fraud Cases Prompt RBI Action
The RBI’s proposal comes at a time when digital payment fraud is witnessing a sharp rise in India. Given the instant nature of UPI and IMPS, recovering funds after a fraudulent transfer remains a major challenge.
According to data from the National Cyber Crime Reporting Portal, such fraud cases have increased nearly tenfold over the past four years. The total value of fraud jumped to Rs 22,931 crore in 2025 from Rs 551 crore in 2021.
The RBI is also exploring additional safeguards for vulnerable users, including senior citizens. The proposal is currently open for public feedback until early May and, if implemented, could mark a shift towards a more security-focused digital payments ecosystem in India.
