The Reserve Bank of India (RBI) is exploring a bold new strategy to protect citizens from the skyrocketing cases of digital payment fraud, which reached ₹22,931 crore in 2025. In a discussion paper released this month, the central bank proposed a mandatory one-hour delay for first-time UPI and digital transactions exceeding ₹10,000 between users who have not previously exchanged funds.
The goal is to break the “psychological hold” fraudsters often have over their victims during Authorised Push Payment (APP) fraud. In these scams, a user is coerced into transferring money themselves through social engineering. This 60-minute window would allow victims time to realize they are being scammed and cancel the transaction before the funds are permanently siphoned away. While merchant payments, e-mandates, and “whitelisted” contacts would be exempt to maintain convenience, the rule targets high-value peer-to-peer transfers, which account for approximately 98.5% of total fraud value.
Additionally, the RBI is proposing a “trusted person” authentication layer for senior citizens and differently-abled individuals for transactions above ₹50,000. This multi-layered approach aims to restore a “safety net” to India’s near-instant payment ecosystem. Public and stakeholder consultation is currently open, as the RBI balances the need for speed with the urgent requirement for digital security.
