RBI Proposes 1-Hour Delay for Digital Payments Above ₹10,000

Reserve Bank of India has proposed a one-hour delay for digital payments exceeding ₹10,000 as part of its discussion paper on strengthening safeguards against fraud. The move comes amid a sharp rise in digital payment frauds across the country.

According to the data cited from the National Cyber Crime Reporting Portal, around 28 lakh fraud cases were reported in 2025, involving ₹22,931 crore. This marks an increase from 24 lakh cases in 2024, highlighting the growing scale of the issue.

How the Proposed Delay Will Work

The RBI has suggested introducing a one-hour lag for Authorised Push Payment transactions above ₹10,000. This delay will be implemented at the payer’s end, where the decision to transfer funds is made.

During this period, the customer’s account will be provisionally debited, but the transaction will not be fully processed. The payer will have the option to cancel the transaction within this window, providing a critical opportunity to prevent fraud.

Purpose Behind the Cooling Period

The proposed delay is based on the “golden hour” principle in fraud prevention, which emphasises the importance of early intervention. Fraudsters often rely on social engineering tactics, such as fake calls or impersonation scams, to pressure victims into making quick decisions.

By introducing a delay, the RBI aims to disrupt this psychological manipulation and give users time to reconsider their actions. If a transaction appears unusual, banks may also prompt users to reconfirm before proceeding.

Flexibility and User Convenience

To ensure that genuine transactions are not impacted, the RBI has proposed exemptions for time-sensitive payments. Users may have the option to override the delay by explicitly authorising the transaction.

Additionally, a whitelisting mechanism could be introduced, allowing users to pre-approve trusted beneficiaries. Transactions to such payees may bypass the delay, ensuring a smoother payment experience.

Also Read: RBI Initiates 7-Day Cash Withdrawal to Absorb Surplus Liquidity!

Conclusion

The RBI’s proposal reflects a proactive approach to enhancing digital payment security while maintaining user convenience. By introducing a simple yet effective safeguard, the central bank aims to reduce fraud risks and build greater trust in digital transactions across India.

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