To curb a surge in fraud driven by customer manipulation, the Reserve Bank of India has proposed a one-hour delay for account-to-account transfers above ₹10,000, along with additional authentication layers to tackle authorised push payment (APP) frauds, where users are tricked into initiating transactions themselves.
During this one-hour window, customers can cancel transactions, giving banks time to flag suspicious activity, said the discussion paper by the RBI. The measure aims to disrupt fraudsters’ ability to create urgency and quickly siphon funds.
The paper also suggests requiring an additional “trusted person” authentication for high-value transactions above ₹50,000 for vulnerable groups such as senior citizens and persons with disabilities. This is intended to add a verification layer for users more susceptible to fraud.
Another proposal involves capping annual credits at ₹25 lakh for certain bank accounts unless additional due diligence is completed, in a bid to curb mule accounts used to route illicit funds. Transactions exceeding the threshold would be subject to scrutiny before funds are released.
Further, the RBI has proposed extending customer-controlled safeguards — such as transaction limits and on/off switches — to all digital payment channels, along with a “kill switch” that allows users to instantly disable all digital transactions in case of suspected fraud.
With digital payments expanding rapidly — transaction volumes rising 38-fold over the past decade — fraud incidents have surged in parallel, highlighting vulnerabilities in an otherwise robust system.
Data from the National Cyber Crime Reporting Portal shows reported digital payment frauds jumping from 2.6 lakh cases involving ₹551 crore in 2021 to 28 lakh cases worth ₹22,931 crore in 2025. The RBI noted that most frauds now stem from social engineering tactics such as impersonation, coercion and deepfake-enabled scams, rather than system breaches.
While these measures could strengthen consumer protection, the central bank acknowledged potential trade-offs, including increased friction in payments and higher compliance costs for banks. Stakeholder comments have been invited until May 8, after which draft guidelines are expected.