Digital Fraud Crackdown: Waiting Period Proposed for High-Value UPI Transactions

In a move aimed at curbing the rising cases of digital fraud in the country, the Reserve Bank of India (RBI) is considering a significant change to digital payment systems such as UPI and IMPS. Under the proposed plan, transactions exceeding ₹10,000 may not be processed instantly and could involve a waiting period of up to one hour. According to the proposal, a mandatory delay could be introduced for high-value digital transactions, allowing users additional time to review and, if necessary, cancel a transfer. The RBI has invited public feedback on this proposal until May 8, 2026, after which final guidelines may be issued. If implemented, this change would mean that transactions above ₹10,000 may no longer be completed immediately. Instead, users may experience a delay of up to one hour, providing an opportunity to stop or correct any unintended transfers. The proposal is part of broader efforts to strengthen safeguards against digital payment fraud. The central bank believes that fraudsters often exploit psychological pressure to rush individuals into making quick transfers. Introducing a delay could help reduce such risks by giving users time to think and act more cautiously. Currently, most digital transactions are processed instantly, leaving little room for users to rectify mistakes. In addition, the RBI is considering enhanced security measures for senior citizens aged above 70 and persons with disabilities. For transactions exceeding ₹50,000, approval from a “trusted person” may be required, adding an extra layer of protection against fraud. The proposal also includes a provision for users to create a “whitelist” of trusted contacts or merchants. Payments made to these pre-approved recipients may be exempt from the one-hour delay, ensuring that routine transactions remain smooth and unaffected.