RBI’s New Digital Payments Security Measures

The Reserve Bank of India is set to introduce a one-hour waiting period for certain digital payments to mitigate online fraud. In a recent discussion paper, the central bank has recommended a mandatory delay of up to one hour for fund transfers exceeding Rs 10,000 through digital payment platforms like UPI and IMPS. This initiative will mainly pertain to person-to-person (P2P) transactions, while payments directed to verified merchants are expected to remain unaffected, ensuring that regular commerce and business transactions proceed without interruption.

New Whitelisting Feature

The RBI has proposed the implementation of a whitelisting feature that will enable users to designate trusted beneficiaries. Transfers made to these accounts will bypass the cooling-off period, thus maintaining a balance between security and convenience for users.

Rising Threat of Digital Payment Fraud

This proposal arrives amid increasing incidents of digital payment fraud, frequently driven by social engineering tactics that coerce users into making immediate transfers. The instantaneous nature of UPI and IMPS complicates the recovery of funds after a transaction for both users and financial institutions.

Enhanced Safeguards for Vulnerable Users

In addition, the central bank is considering stronger protections for vulnerable groups, particularly senior citizens, as part of this broader framework.

Data from the National Cyber Crime Reporting Portal (NCRP) indicates a dramatic spike in digital payment fraud, with reported cases increasing tenfold over the last four years. The financial toll has also surged, with the total value of fraud reaching Rs 22,931 crore in 2025, up from Rs 551 crore in 2021.

The proposal is currently open for public feedback, with comments accepted until early May. Should these changes be enacted, it could represent a significant transition in India’s digital payments landscape from a speed-oriented approach to one prioritising security.