The Reserve Bank of India (RBI) has recommended a required one-hour cooling-off period for digital transactions over ₹10,000 to enhance digital payment security measures. The proposal is part of a discussion paper titled “Exploring safeguards in digital payments to curb frauds” and comes as the number of online financial scams in the country has increased significantly.
Under the proposal, account-to-account digital transfers made through platforms such as UPI, IMPS, net banking, debit cards, and credit cards above the ₹10,000 threshold may not be credited instantly. Instead, the amount would remain in a provisional hold state for one hour, giving customers time to review, cancel, or report any suspicious transaction before the funds are permanently transferred.
The RBI has described this delay as a preventive control mechanism designed to tackle scams involving fake customer care calls, phishing, deepfake impersonation, and forced transfers. According to the central bank’s findings, transactions above ₹10,000 account for nearly 45% of fraud cases by volume but almost 98.5% of the total value lost in digital fraud incidents.
“RBI proposes 1-hour cooling-off period for digital transfers over ₹10,000.”~Republic Business
Here’s the Catch: Not Every Payment Will Be Delayed
Although the headline proposal has captured the public’s attention, it is crucial to note that not all transactions will be affected. Merchant payments, recurring commitments, bill payments, and payments to trusted beneficiaries may continue to be instant.
The RBI has proposed two key bypass options. First, users may be allowed to whitelist trusted contacts or frequent beneficiaries, ensuring that payments to them continue without delay. Second, customers may be given an option to bypass the cooling-off period for urgent transactions after an extra verification step.
This means day-to-day transactions such as online shopping, food delivery, cab bookings, or utility payments are unlikely to be impacted, reducing inconvenience for regular users.
“RBI proposes one-hour delay on high-value digital transfers to curb fraud.”~The Economic Times
Extra Protection for Senior Citizens and Vulnerable Users:
The discussion paper also proposes additional safeguards for senior citizens and vulnerable users. For people aged 70 years and above, transfers above ₹50,000 may require secondary approval from a trusted person, such as a family member or nominee.
In some cases, the RBI is also considering a 24-hour delay window for such transactions to provide enhanced protection against impersonation and coercion-based frauds. This is especially important as fraud involving senior citizens has reportedly contributed a significant share of monetary losses in recent years. Additionally, the RBI has floated the idea of a one-click “kill switch”, which would allow customers to instantly freeze all digital payment channels linked to their bank account in case they suspect fraud.
“One-hour delay for UPI, IMPS payments above ₹10,000 soon?”~Financial Express
Proposal Open for Public Feedback:
It is important to note that this is not a final rule yet. The RBI has invited comments from the public, banks, fintech firms, and industry experts until May 8, 2026, after which final guidelines may be issued.
If implemented, this would be one of the biggest changes to India’s digital payment ecosystem since the rapid rise of UPI. While some users may view the delay as an inconvenience, the central bank believes the move could significantly reduce fraud losses and improve consumer protection.
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