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The move aims to stop Rising Digital Payment Fraud in India
The Reserve Bank of India (RBI) has suggested a major change to the digital payment regulations by introducing a one-hour delay for transactions that are high in value. In the latest document of discussion, the central bank has suggested setting up a cooling period that is mandatory for funds transfers that exceed the amount of Rs 10,000 that are made through platforms such as the Unified Payments Interface (UPI) and Immediate Payment Service (IMPS).
RBI Proposes 1-Hour Cooling Period. The proposed rule primarily targets people-to-person (P2P) payments. Merchants that have verified transactions are likely to be unaffected, ensuring that daily transactions and online purchases can continue to run smoothly without interruption.
Whitelisting feature to improve the User Experience
To ensure that security is balanced with user-friendliness To balance user-friendliness and security, the RBI is also proposing the idea of a “whitelisting” function. It would permit users to identify as trusted beneficiaries, which would allow consumers to avoid the one-hour delay for transactions to come in the future. This approach ensures that routine transactions with trusted contacts remain unhindered while safeguarding against fraud.
The Rise in Online Fraud in Payments
The announcement coincides with a period when digital fraud in India is on the verge of a major increase. According to the data of the National Cyber Crime Reporting Portal (NCRP), the number of fraud cases related to digital transactions has risen nearly tenfold in the past four years. The total cost of such frauds has risen dramatically, from 551 crore in 2021 to an astounding Rs 22,931 million in 2025.
Most of these scams originate from techniques of social engineering, in which fraudsters manipulate people to transfer funds instantly under pressure. Due to the instant character of UPI and IMPS transactions, recovering money following such events is extremely challenging for both the victim and financial institutions.
Prioritize Security over speed.
The RBI’s proposed policy suggests a possible change in India’s payment ecosystem, from focusing on speed to putting more emphasis on security. This central bank is investigating additional protections, specifically for those who are vulnerable, such as elderly people who are frequently targeted by scammers on the internet.
This discussion document is open to public comments, and responses are invited until the end of May. If the plan is adopted, it could be a major step towards making India’s rapidly growing digital payment system more secure and less susceptible to fraud.
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