The Reserve Bank of India (RBI) is proposing to introduce delays in high-value digital transactions as part of wider measures to combat rising fraud, according to a discussion paper released on Thursday.
The regulator is opening several safeguards for public debate, including a one-hour cooling-off period for transfers exceeding Rs 10,000, “lagged credits” for specific transactions, and a universal “kill switch” to instantly freeze payments. Other proposals in the paper include “trusted-person” approvals for vulnerable users and transaction caps on accounts flagged as suspicious.
The paper proposes introducing targeted friction in high-risk transactions while keeping low-value payments seamless.
One-hour cooling-off period
The most consequential proposal is a mandatory delay of up to one hour for account-to-account transfers above Rs 10,000, including Unified Payments Interface (UPI) payments.
The transaction will be held at the sender’s end before being processed.
Customers will have a window to cancel the transfer.
The feature will be available to individuals and small businesses without chargeback protection
The objective is behavioural. Fraudsters rely on urgency, posing as bank officials, police, or relatives to push victims into transferring money instantly. A forced delay gives users time to reassess and potentially stop a fraudulent payment.
Trusted-person approval
“Almost all sections of society, especially vulnerable groups such as senior citizens have fallen prey to such APP fraud, underscoring the need to consider enhanced protective measures for this customer segment,” said the RBI in a press statement, referring to authorised push payment.
It proposes “additional authentication for a specific class of users like senior citizens”.
Transactions above Rs 50,000 may require approval from a pre-nominated trusted person.
The trusted individual would need to confirm the transaction before processing.
Likely to apply to elderly users and persons with disabilities.
“The enhanced safeguard mechanism can be in the form of a ‘trusted person’ designated by a vulnerable customer. This trusted individual acts as another layer of authentication for high-value transactions, say, those above Rs 50,000”, said the RBI in the paper.
Caps on suspicious accounts
The RBI has also proposed placing restrictions on accounts flagged for suspicious activity.
Incoming credits could be capped in such accounts.
Aimed at disrupting mule accounts used to funnel fraud proceeds
This shifts part of the focus from user behaviour to the receiving end of fraudulent transactions.
Universal kill switch
A notable customer-control feature under consideration is a “kill switch”.
“Customers may be provided with a single facility to disable all digital payment transactions from the account (‘kill switch’) at one stroke,” said RBI in its paper.
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Users could instantly disable all digital payments from their account. -
Would apply across UPI, cards, net banking, and other channels. -
Reactivation may require authentication or a visit to a bank branch.
This is designed as an emergency response tool if a user suspects their account has been compromised.
Why RBI is proposing these changes
India’s digital payments ecosystem has grown rapidly, but fraud has kept pace. The RBI has flagged the rise of authorised push payment scams, where users themselves initiate transfers under manipulation.
Such transactions are difficult to reverse, making prevention more effective than recovery. The proposed measures aim to break the typical fraud cycle of urgency, pressure and instant fund transfer.
What this means for users
If implemented, these changes will alter how consumers approach digital payments:
Speed vs safety: High-value transactions may no longer be instant.
Planning ahead: Time-sensitive payments may need better scheduling.
Greater control: Features like kill switch and transaction checks add security layers.
For most day-to-day payments below Rs 10,000, the experience is expected to remain unchanged.
Expert’s views
What happens next
The discussion paper is open for public feedback until 8 May 2026. The RBI will take a final call after reviewing responses.
Until then, digital payments, including UPI, continue to function as usual. But the direction is evident as fraud risks rise, India’s payments system may gradually move from pure speed to a balance between speed and security.
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