The Reserve Bank of India (RBI) has proposed new rules to make digital payments safer, as online fraud cases continue to rise in India. These frauds mostly involve people being tricked into sending money themselves through apps like UPI and IMPS, making it very hard to recover the funds later.
1-Hour Delay for High-Value Transfers
One of the key proposals is a one-hour delay for person-to-person (P2P) transfers above ₹10,000. This means the money will be debited, but the transaction will only be completed after one hour. During this time, users can cancel the payment if they realise something is wrong.
The RBI believes this delay can help stop fraud, as scammers often pressure people to act quickly. Even though such transactions form about 45% of fraud cases, they account for almost 98.5% of the total money lost. Daily payments like shopping, bill payments, and auto-debits will not be affected. Users can also mark trusted contacts so that transfers to them happen instantly without any delay.
Extra Safety for Vulnerable Users
The RBI has also suggested extra protection for senior citizens and people with disabilities. If they try to send more than ₹50,000, a second approval from a trusted person will be needed. To avoid misuse, any change to this trusted person will take 24 hours to become active. This step is meant to stop fraudsters from quickly changing security settings.
Stronger Security with AI and New Rules
To catch fraud early, the RBI is using AI tools like MuleHunter.AI to track suspicious bank accounts. It has also created the Indian Digital Payment Intelligence Corporation (IDPIC) to monitor fraud across the system in real time.
From April 1, 2026, all digital payments must follow stricter two-factor authentication rules. This means every payment will need at least two checks, like a PIN and an OTP. Banks may also ask for extra verification for risky transactions based on your location, device, or spending pattern. Users will also get a “kill switch” option to quickly block all digital payments if they feel their account is at risk. If banks fail to follow these rules, they will be responsible for any loss. The RBI is currently asking for public feedback on these proposals until May 8, 2026, before making a final decision.