Sending money instantly through UPI has become second nature for many Indians. But that speed may soon come with a pause. The Reserve Bank of India (RBI) is considering a proposal that could introduce a one-hour delay for certain high-value digital transfers, as it tries to tackle the rising cases of online fraud.
The idea is simple, i.e., give users a short window to stop a transaction if something feels wrong.
Under the proposal, account-to-account transfers above Rs 10,000, especially through UPI, may not go through instantly. Instead, there could be a one-hour waiting period before the money reaches the receiver.
During this time, the amount will be debited from the sender’s account but held back temporarily. This buffer is meant to help users cancel the payment if they realise they’ve been tricked or made a mistake.
Banks will also use this time to run checks in the background. If a transaction looks unusual, like sending a large amount to a new account, the user may get an alert asking them to confirm the payment again.
If the bank finds something suspicious, it may not process the transaction without reconfirmation from the sender.
The central bank’s concern comes from a sharp rise in digital fraud, especially cases where users are manipulated into approving payments themselves.
According to the RBI, transactions above Rs 10,000 account for around 45% of fraud cases by number, but nearly 98.5% of the total money lost. This makes higher-value transactions a key risk area.
By introducing a delay, the RBI hopes to add a layer of protection without completely disrupting the ease of digital payments.
The proposal also focusses on protecting those who are more vulnerable to scams.
For customers aged 70 and above, and for persons with disabilities, the RBI has suggested an extra step for high-value transfers above Rs 50,000. These transactions may need approval from a “trusted person”.
This is aimed at reducing losses from social engineering scams, where fraudsters convince users to transfer money themselves.
At the same time, users will have the option to opt out of this rule, although there may be a waiting period and risk warnings before doing so.
The RBI has tried to ensure that daily transactions remain smooth. Payments to merchants, automatic debits like EMIs or subscriptions, and cheque payments are likely to be kept outside the delay system.
Users may also be able to ‘whitelist’ trusted recipients, so transfers to them continue without any waiting period.
For now, these are only proposals. The RBI has invited public feedback until May 8 and will review responses before taking a final call.
If implemented, this could mark a shift in how digital payments work in India—slightly slower for some transactions, but possibly much safer.