The Reserve Bank of India (RBI) has proposed a significant change to digital payment systems by introducing a one-hour cooling period for high-value transactions exceeding ₹10,000. This measure aims to provide users with a crucial window to cancel payments and protect themselves from increasingly sophisticated online fraud schemes. The central bank’s initiative specifically targets impersonation scams and coercion-based frauds that have been affecting digital payment users across the country.
Under the proposed framework, users will have the ability to cancel their digital payments within the one-hour delay window, offering a safety net against fraudulent transactions. For even larger transactions above ₹50,000, the RBI has suggested additional security measures that may require approval from a trusted person. This enhanced protection layer is specifically designed to safeguard vulnerable groups, including senior citizens and persons with disabilities, who are often targeted by scammers exploiting their limited familiarity with digital payment systems.
The RBI’s proposal also includes stringent measures to crack down on mule accounts, which are frequently used by fraudsters to channel illegal funds. The central bank has recommended an annual credit cap of approximately ₹25 lakh for accounts that have not undergone enhanced verification checks. Any funds exceeding this limit would be held as “shadow credits” until proper verification is completed, preventing criminals from using multiple accounts to launder money or facilitate fraudulent activities.
These proposed regulations come at a time when digital payment fraud has been rising sharply in India, with criminals employing various tactics including fake customer service calls, phishing messages, and social engineering techniques. The cooling-off period and additional verification requirements are expected to give potential victims time to reconsider suspicious transactions and seek help before irreversible financial losses occur. Banks and payment service providers would need to implement these changes in their systems once the regulations are finalized.
The Reserve Bank of India emphasized that these measures are part of a comprehensive strategy to strengthen the digital payment ecosystem while maintaining the convenience that has made online transactions popular among millions of Indians. The central bank stated that the proposed guidelines aim to balance user protection with the ease of conducting legitimate transactions, ensuring that the growth of digital payments continues without compromising security standards for vulnerable populations.
