The Reserve Bank of India (RBI) has put forth a proposal suggesting a one-hour delay for digital payments that surpass Rs 10,000 for each transaction. This recommendation is part of the report titled ‘Discussion Paper – Exploring Safeguards in Digital Payments to Curb Frauds,’ which outlines various strategies to reduce the increasing cases of fraud in digital financial activities.
According to the RBI, there were approximately 2.8 million reported cases of digital payment fraud in 2025, totaling Rs 22,931 crore. The previous year, 2024, saw around 2.4 million cases with a value of Rs 22,848 crore. These statistics are derived from the National Cyber Crime Reporting Portal (NCRP).
The RBI noted that fraudsters employ diverse tactics, including fake call centers, deepfake impersonation scams, and mule account networks. Vulnerable demographics, particularly senior citizens, have been significantly affected by these Authorised Push Payments (APP) frauds. The central bank emphasized the pressing need for enhanced systems and processes to tackle these challenges, seeking input from stakeholders regarding the introduction of additional safety measures.
The central bank underscored the importance of implementing a delay at the payer’s end, as this is where the decision to transfer funds occurs and where social engineering tactics are often utilized. “A brief delay before the actual debit can serve as a preventive measure by disrupting the fraudster’s psychological hold on the victim and allowing the payer to reconsider the transaction,” the RBI stated.
To ensure low-value transactions remain efficient, the proposed delay would only apply to APP transactions exceeding Rs 10,000. The RBI highlighted that transactions above this threshold represent roughly 45 percent of reported fraud cases by number but account for around 98.5 percent by value. Under this proposal, once a customer initiates an APP transaction above Rs 10,000, a one-hour delay would be implemented.
This delay could occur at either the payer’s or the payee’s end, or both. For practical implementation, it is suggested that the delay be applied solely at the payer’s end. During this period, the payer’s bank would provisionally debit the customer’s account while allowing the payer the opportunity to cancel the transaction for any reason. The RBI noted that this one-hour window aligns with the “golden hour” principle in fraud-risk management, emphasizing the critical nature of the initial moments following a fraudulent transaction to prevent fund loss.
During this designated time, if the bank detects an unusual transaction, it may request reconfirmation from the payer, providing relevant details about its concerns and advising caution. If the payer chooses to continue after reviewing the provided information, the transaction will proceed as planned.
Furthermore, recognizing the urgency of certain transactions, the RBI suggests offering payers the option to bypass the delay for specific transactions through explicit authorization, such as a whitelisting mechanism. In such cases, the delay may be overridden. Alternatively, payers could whitelist certain payees, whereby all payments to these pre-approved payees would not be subject to a time lag.
Anish Mondal, a journalist with over nine years of experience in covering transportation sectors, is currently part of the editorial team at Indianexpress.com, focusing on significant market developments.
Professional Background: Anish commenced his career with Rajya Sabha Television (now Sansad TV), gaining an insightful understanding of legislative processes and governance. In 2018, he shifted to digital finance journalism with FinancialExpress.com, where he honed his skills in market analysis and corporate reporting. Before joining The Indian Express in 2025, he played a crucial role at ETNowNews.com.
Educational Qualifications: Anish possesses a strong academic foundation in communication and humanities, including a Master of Journalism and Mass Communication (MJMC) from Apeejay Stya University, a Post Graduate Diploma in Journalism and Production (PGTVRJP) from Apeejay Institute of Mass Communication, and a Bachelor of Arts (English Honours) from the University of Calcutta.
Coverage Areas: Anish specializes in reporting on the growth of Indian Railways and National Highway networks.
Stay informed with the latest updates – Click here to follow us on Instagram.
