The Reserve Bank of India has put forth a discussion paper outlining four options to enhance security in digital transactions. One option suggests delaying credit for authorized push payments exceeding Rs 10,000 to combat rising fraud cases, which surpassed Rs 22,930 crore in 2025. Banks would be mandated to hold transfers above Rs 10,000 for an hour at the payer’s end, allowing customers to cancel the transaction during this period.
Another proposal entails additional authentication by a trusted person for high-value digital transactions involving senior citizens. Accounts with satisfactory additional review would receive large credits, and customers could impose controls. The RBI emphasized that transactions above Rs 10,000 constitute a significant portion of fraud cases by volume and value, justifying the targeted safeguard threshold.
Most digital frauds today involve social engineering tactics rather than technical breaches, as fraudsters manipulate victims into transferring money themselves. The paper highlights the challenge in recovering funds once they move through rapid channels like UPI or IMPS. Introducing a delay at the payer’s end disrupts the fraudster’s psychological tactics by breaking their control over the victim.
Citizens aged 70 and above, along with individuals with disabilities, may need to nominate a trusted person for mandatory authentication in transfers exceeding Rs 50,000 under another proposal. Additionally, an annual cap of Rs 25 lakh for credits into individual and small business accounts is suggested, with excess amounts held as “shadow credit” until legitimacy is verified.
The fourth proposal introduces a “kill switch” feature enabling customers to instantly disable all digital payment channels from their account, a functionality already in place in Singapore and being adopted by some Australian banks. These options aim to introduce delays in specific digital payments, enhance due diligence, empower customers with customized controls, and deter fraudulent transactions.
Stakeholders have until May 8 to provide feedback through the RBI’s Connect 2 Regulate portal, after which the central bank will review comments and potentially issue draft guidelines.
