The Reserve Bank of India (RBI) has proposed a new security measure that could introduce a mandatory one-hour delay for UPI and IMPS fund transfers above ₹10,000, aimed at reducing rising digital payment fraud in India.
What the RBI Proposal Says
In its recently released discussion paper, the RBI suggested that:
- Transfers above ₹10,000 via UPI and IMPS may face a cooling period of up to one hour
- The rule would mainly apply to person-to-person (P2P) transactions
- Payments to verified merchants are likely to remain unaffected
This means regular shopping and merchant payments should continue without interruption.
Whitelisting Trusted Beneficiaries
To balance convenience with security, RBI has also proposed a beneficiary whitelisting feature, allowing users to mark trusted recipients. Transfers to whitelisted accounts would bypass the cooling period.
This could help frequent users avoid delays while still protecting against fraud involving unknown recipients.
Why This Change Matters
The proposal comes amid a sharp rise in digital payment scams, many driven by:
- Social engineering fraud
- Fake customer support scams
- Urgent transfer manipulation tactics
Since UPI and IMPS transactions are processed instantly, reversing fraudulent payments is often difficult once funds leave the sender’s account.
Fraud Cases Rising Rapidly
According to the National Cyber Crime Reporting Portal (NCRP):
- Digital payment fraud cases have increased 10 times in four years
- Fraud value rose from ₹551 crore in 2021 to ₹22,931 crore in 2025
This surge has pushed regulators to rethink the “instant payments first” model in favor of stronger safeguards.
Additional Protection for Vulnerable Users
RBI is also exploring special protections for vulnerable groups, including:
- Senior citizens
- First-time digital payment users
- High-risk fraud-prone accounts
Public Feedback Open Till May
The proposal is currently open for stakeholder feedback until early May. If approved, it could mark a major shift in India’s digital payments ecosystem toward a more security focused framework.
Keep building. Keep learning. Keep growing with StartupByDoc.