RBI Proposes One-Hour Delay for Digital Transfers Above ₹10,000 to Strengthen Fraud Protection

In a significant move aimed at enhancing the safety of digital transactions, the Reserve Bank of India (RBI) has proposed a new safeguard that could introduce a mandatory one-hour cooling-off period for certain online fund transfers exceeding ₹10,000.

According to the RBI’s discussion paper on digital payment security, account-to-account transfers above ₹10,000 made through real-time payment systems such as UPI and IMPS may not be credited instantly. Instead, the amount would remain on hold for up to one hour before reaching the recipient’s account. During this period, customers would have the option to review or cancel the transaction if they suspect fraud or have transferred money by mistake.

The proposed measure is primarily aimed at reducing the growing number of online financial frauds, particularly scams where victims are pressured into making instant payments. RBI believes that the one-hour window will provide users with valuable time to recognise fraudulent activity and prevent financial losses.

Importantly, the proposal is expected to apply mainly to person-to-person (P2P) transfers. Payments made to verified merchants, recurring transactions, and trusted beneficiaries are likely to remain unaffected, ensuring that routine commercial payments continue without disruption.

The central bank has also proposed allowing customers to create a whitelist of trusted beneficiaries, enabling transfers to those recipients without any waiting period.

The RBI has invited public feedback on the proposal before issuing final guidelines. If implemented, the new framework could mark a major shift in India’s digital payment ecosystem by balancing the convenience of instant payments with stronger protection against cyber fraud.

With digital payment frauds witnessing a sharp rise across the country, the proposed cooling-off period is expected to strengthen consumer confidence and make online transactions more secure.