The Reserve Bank of India is planning to add a one-hour waiting time for some digital payments to help reduce online fraud.
In a discussion paper released recently, the central bank has proposed a mandatory delay of up to one hour for fund transfers exceeding Rs 10,000 via digital payment modes such as UPI and IMPS.
The proposed framework will primarily apply to person-to-person (P2P) transactions, while payments made to verified merchants are expected to remain unaffected. This ensures that routine commerce and business payments continue without disruption.
The RBI has also suggested introducing a whitelisting feature, allowing users to mark trusted beneficiaries. Transactions to such accounts would not be subject to the cooling period, thereby balancing security with user convenience.
The proposal comes at a time when digital payment fraud is on the rise, often led by social engineering tactics that pressure users into making instant transfers. Given the real-time nature of UPI and IMPS, recovering funds post-transaction remains a challenge for both users and financial institutions.
Additionally, the central bank is exploring enhanced safeguards for vulnerable users, including senior citizens, as part of the broader framework.
According to the National Cyber Crime Reporting Portal (NCRP), digital payment fraud has surged significantly, with the number of cases rising 10X over the past four years. The total value of such frauds also jumped sharply to Rs 22,931 crore in 2025 from Rs 551 crore in 2021.
The proposal is currently open for feedback, with responses invited till early May. If implemented, it could signal a shift in India’s digital payments ecosystem from speed-first to a more security-focused approach.
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