The New RBI Rule That Could Stop You From Losing Money to Online Frauds

Key Takeaways 

• The RBI has proposed a 1-hour delay on digital payments above ₹10,000. This gives users time to cancel suspicious transfers before funds are released.

• Fraud cases rose from 2,60,000 in 2021 to 28,00,000 in 2025, with losses climbing from ₹551 crore to ₹22,931 crore in the same period, pushing the RBI to act.

Why a 1-Hour Wait Could Change How India Pays?

The Reserve Bank of India has proposed a one-hour delay for payments above ₹10,000 made through account-to-account transfers. This will slow down certain transactions in the short term. But in the long run, it could save lakhs of Indians from losing money to online scams.
 

A 1-hour delay can affect time-sensitive transactions like tax payments, vendor payouts, and medical emergencies. This could disrupt cash flow for small businesses. The RBI itself acknowledged that a mandatory lag conflicts with the core design principle of instant payments and could confuse users. 

What does this mean for Everyday Indians?

Transactions above ₹10,000 account for approximately 45% of reported fraud cases by volume, but about 98.5% by value, according to the National Cyber Crime Reporting Portal (NCRP). This means the delay targets the transactions where the real damage happens.
 

The proposal also includes protections for vulnerable users. Citizens aged 70 and above and persons with disabilities would need a “trusted person” to authenticate transfers above ₹50,000. These cases alone cover nearly 92% of the fraud value reported to NCRP.

What Experts Are Saying and What Happens Next?

Bankers are open to the idea but want a higher threshold. 

A senior banker at a private sector bank said, “It is a tradeoff between convenience and fraud prevention. Whether it should be ₹10,000 or ₹25,000 can always be debated.” Many bankers are expected to push for raising the limit to ₹25,000 in their feedback to the RBI.

A payments technology executive flagged implementation challenges. “Technically, it is feasible to introduce a delay. But till now, the overall focus has been on having frictionless transactions. Introduction of deliberate friction requires changes at multiple levels,” the executive said. 

The RBI has drawn the proposal from global examples. The UK allows banks to delay suspicious payments by up to 72 hours, while Singapore has implemented 12-hour cooling-off periods for high-risk actions. 

Conclusion

The RBI’s proposal is still at the discussion stage. Stakeholders have until May 8 to submit comments through the RBI’s Connect 2 Regulate portal. The plan deals with a real problem. But its success will depend on how well India balances security with the speed at which digital payments are built. The final guidelines, if issued, could reshape how over a billion Indians send money every day.

Frequently Asked Questions 

1. Will RBI make me wait 1 hour for payments above ₹10,000? How does this help me?
Yes, the Reserve Bank of India has proposed a 1-hour delay for transfers above ₹10,000. This gives you time to cancel a suspicious transaction and can help prevent fraud losses. It may feel inconvenient, but it adds an important safety layer.

2. What are the 3 key new payment safety features proposed by RBI?
The proposal includes a 1-hour delay on high-value transfers and a trusted-person approval system for vulnerable users. RBI also proposed a “kill switch” that lets you instantly block all digital payments if fraud is suspected.