The Reserve Bank of India (RBI) has proposed introducing a one-hour delay for certain digital transactions exceeding ₹10,000, as part of a broader effort to strengthen safeguards against rising online fraud.
This recommendation is outlined in a recent discussion paper aimed at enhancing security in digital payments across the country.
Rising Digital Fraud Cases
The move comes in response to a surge in fraud incidents reported on the National Cyber Crime Reporting Portal. In 2025, nearly 28 lakh cases of digital fraud were recorded, involving an estimated ₹22,931 crore.
This marks a notable increase compared to around 24 lakh cases reported in 2024, underlining the growing scale and complexity of cyber fraud in India.
How the Proposed Delay Will Function
Under the proposal, digital transactions classified as Authorised Push Payments above ₹10,000 would be subject to a one-hour “cooling period.”
During this interval:
- The payer’s account will be provisionally debited
- The transaction will remain pending and not fully processed
- Users will have the option to cancel the payment within the one-hour window
This mechanism is designed to give customers an opportunity to reverse transactions in case of suspected fraud.
Objective: Leveraging the “Golden Hour”
The RBI’s proposal is based on the “golden hour” principle, which highlights the importance of quick action in preventing financial fraud.
Fraudsters often exploit urgency through tactics like impersonation calls or fake alerts, pushing users to transfer funds immediately. The cooling period aims to counter this pressure by giving users time to reassess and verify transactions.
Banks may also introduce alerts or prompts during this window to encourage users to double-check unusual payments.
Balancing Security with Convenience
To avoid disrupting genuine transactions, the RBI has suggested certain flexibilities:
- Users may be allowed to override the delay by explicitly confirming the payment
- A whitelisting feature could enable customers to pre-approve trusted beneficiaries
- Transactions to such approved recipients may not be subject to the delay
These measures are intended to maintain a smooth user experience while enhancing security.
Conclusion
The RBI’s proposal reflects a forward-looking approach to tackling digital payment fraud. By introducing a simple cooling-off mechanism, the central bank aims to reduce risk, empower users, and strengthen confidence in India’s rapidly growing digital payments ecosystem.
Summary:
The RBI has proposed a one-hour delay for digital payments above ₹10,000 to curb rising fraud cases. The cooling period will allow users to cancel suspicious transactions while offering flexibility through overrides and whitelisting, balancing security with convenience.
Disclaimer:
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