Why Did RBI Propose 1-Hour Delay for Digital Transactions Above INR 10,000?

The Reserve Bank of India (RBI) has proposed a one-hour delay for certain digital transactions above INR 10,000 as part of a broader plan to curb rising online fraud. The move is aimed at introducing a “cooling-off” period that allows users to pause, review, or cancel transactions before money is finally transferred.

The proposal comes in response to a sharp increase in authorised push payment (APP) frauds, where individuals are tricked into sending money under pressure or deception. Authorities say such scams often rely on urgency, making quick decision-making a key vulnerability. Big Change in Digital Payments Likely: RBI Considers Delayed Credit Rule to Prevent High-Value Transaction Frauds.

Why RBI Proposed 1-Hour Delay for Transactions Above INR 10,000

A key reason behind the proposed delay is to disrupt the tactics commonly used by fraudsters. In many scams, victims are pressured to transfer money immediately, often under the pretext of emergencies, legal threats, or fake offers.

By introducing a one-hour window, the RBI aims to reduce impulsive transactions and give users time to verify the legitimacy of requests. This pause could allow individuals to reconsider or consult family members before completing high-value payments. RBI Repo Rate: Reserve Bank of India Holds Repo Rate at 5.25%, Maintains Neutral Instance Amid Global Uncertainty.

Providing Time for Detection and Intervention

The cooling-off period is also intended to enable early detection of suspicious transactions. During the delay, banks and payment systems may flag unusual activity and alert customers.

This window can be crucial for stopping fraudulent transfers before funds are irreversibly moved, especially in cases where victims realise the scam shortly after initiating the payment.

Addressing Rise in APP Frauds

Data from the National Cyber Crime Reporting Portal shows a steady rise in APP fraud cases in recent years. Unlike traditional cyberattacks, these scams exploit human behaviour rather than system vulnerabilities.

The RBI’s proposal targets this specific category of fraud by introducing controlled friction in high-risk transactions, while keeping smaller, routine payments unaffected.

The central bank has clarified that the delay would apply only to certain high-value or high-risk transactions, ensuring that low-value digital payments remain fast and convenient.

The proposal reflects a broader strategy to balance security with user experience, as India continues to see rapid growth in digital payment adoption through platforms like UPI and mobile banking.

The RBI has invited public and stakeholder feedback on the proposal until May 8. Based on the responses, it may issue formal guidelines for implementation. If adopted, the one-hour delay could become a key safeguard in India’s digital payments ecosystem, aimed at reducing fraud losses while preserving user trust.

(The above story first appeared on LatestLY on Apr 10, 2026 01:03 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).