Will Reserve Bank of India’s 1-Hour Payment Delay Rule Help Curb Rising Digital Fraud In India? Know Key Details Here

Mumbai: With digital payments rising rapidly across India, fraud cases have also increased. The Reserve Bank of India has released a discussion paper suggesting new safety measures to protect users. The central bank is seeking feedback from stakeholders until May 8, 2026 before finalising the rules.

1-Hour Delay: A Safety Buffer

One of the key proposals is a one-hour delay in certain digital payments. While it may seem inconvenient, it works as a safety buffer. Many frauds happen when users act quickly under pressure. This one-hour window will allow users to check details and cancel transactions if needed before money is transferred.

Trusted Person Concept

Another important idea is adding a “trusted person” for approval in transactions. This works like a second layer of security, especially helpful for elderly and vulnerable users. If someone tries to trick a user, the trusted person can act as a checkpoint before money is sent.

‘Kill Switch’ Feature

The proposed “kill switch” is a strong safety tool. If a user suspects that their account has been hacked, they can instantly stop all digital transactions with one click. This helps prevent further loss without waiting for bank support.

More Control For Users

The RBI also wants to give users more control over their accounts. Users will be able to set transaction limits and choose which payment channels to keep active. This makes the system more user-driven and secure.

Tighter Rules For Risky Accounts

Accounts with low or incomplete KYC are often used in fraud. The new rules aim to restrict large transactions from such accounts. This will make the system safer and reduce misuse.

Telecom-Based Safeguards

The proposal also includes telecom-linked safety features. Calls from numbers starting with 1600xx or 1400xx will help users identify genuine or promotional calls. This can reduce fraud through fake phone calls.

Digital Payments Growth In India

Digital payments in India have grown sharply in the last decade. Transaction volume has increased 38 times, while value has grown more than three times. Systems like UPI, cards, IMPS, NEFT and RTGS have played a major role in this growth.