UPI payments above ₹10,000 may face 1-hour delay: Know why

UPI payments above ₹10,000 may face 1-hour delay: Know why

The Reserve Bank of India (RBI) has proposed a one-hour delay for digital transfers over ₹10,000.

The move is part of a broader strategy to combat the rising tide of online fraud in India.

The RBI's discussion paper highlights the growing concern over digital fraud tactics, where victims are tricked into authorizing payments themselves.

Proposed delay for high-value transactions

The RBI's proposal suggests a one-hour delay for account-to-account transfers over ₹10,000. This is especially applicable to those made through systems like Unified Payments Interface (UPI).

The idea is to create a buffer period during which users can cancel the transaction if they realize something is wrong.

During this time, banks will conduct real-time checks and alert customers about any unusual transactions.

Additional protections for senior citizens and differently-abled people

The RBI has also proposed an extra layer of protection for senior citizens and differently-abled people.

Customers aged 70 and above or persons with disabilities may have to route high-value transactions over ₹50,000 through a "trusted person" for added authentication.

This is because these users are often targeted by social engineering scams that can lead to disproportionately higher financial losses.

Empowering users with 'kill switch'

The RBI's discussion paper also talks about giving customers more control over their digital banking activities.

Among the measures being considered are account-level transaction limits across payment modes and a unified "kill switch."

This would let users instantly disable all digital transactions in case of suspected fraud.

Reactivating these services would require stringent verification, ensuring that compromised accounts cannot be easily misused again.

Monitoring of suspected mule accounts

The RBI has also proposed closer monitoring of bank accounts that receive unusually large credits. This is particularly applicable to those suspected to be mule accounts used to channel illicit funds.

Such accounts could face limits on annual inflows unless enhanced due diligence is carried out.

Funds exceeding these thresholds may be temporarily held until verified, adding another layer of defense against fraudulent networks.

Surge in digital payment frauds

The RBI's proposal comes as India witnesses a surge in digital payment frauds.

Reported cases have increased more than tenfold between 2021 and 2025, while the total value of losses has surged nearly 40 times to about ₹230 billion.

A large number of these cases involve authorized push payment scams, where users are tricked into transferring money themselves through phishing calls or fake customer care interactions.