The Reserve Bank of India (RBI) has proposed a revolutionary measure in response to the increasing cases of online and digital fraud. According to a discussion paper released by the RBI, a one-hour 'cooling period' may now be mandatory for digital payments exceeding ₹10,000.
This step has been taken because approximately 2.8 million cases of digital fraud were recorded in 2025, resulting in a loss of over ₹22,900 crores to the general public. Since systems like UPI and IMPS allow for instant money transfers, victims often do not have time to file complaints or halt transactions. Under the proposed regulations, if an individual sends more than ₹10,000 to a new account, the money will not be credited immediately but will remain on 'provisional debit' (hold) for one hour.
During this time, if the user suspects fraud, they will be able to cancel the payment. However, to accommodate the everyday needs of the public, small payments and regular merchant transactions are excluded from this rule, minimizing inconvenience for the general public while significantly increasing the chances of recovery in major fraud cases. The RBI has also suggested stricter security standards for senior citizens and persons with disabilities.
For payments over ₹50,000 made by citizens aged over 70, a 'secondary co-authentication' rule is proposed, which may require approval from a trusted person. Additionally, a 'kill switch' is being considered, allowing customers to immediately block all digital channels of their accounts in emergencies. The Reserve Bank has sought suggestions from the public and banking experts on these proposals until May 8, 2026, after which final guidelines will be issued.
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