RBI May Add 1 Hour Delay for Some UPI Payments to Reduce Fraud
Sending money online might soon come with a short waiting period. The Reserve Bank of India is looking at a proposal to delay certain digital payments by up to one hour, mainly for higher amounts, to help prevent fraud.
What could change?
If the proposal goes through, transfers above ₹10,000 may not happen instantly. Instead, they could be held for up to one hour before being completed. During this time, users will have the option to cancel the payment, and in some cases, banks may ask for a quick confirmation if something seems unusual.
The delay will not apply to everyday transactions like
- Payments to merchants
- Auto debits or e mandates
- NACH transactions
- Cheque payments
There may also be an option to mark certain people as trusted, so payments to them go through without delay.
Why is this being planned?
Online fraud has gone up sharply in recent years. Reports show cases rising from 2.6 lakh ₹551 crore in 2021 to 28 lakh ₹22,931 crore in 2025.
A big reason is that many scams do not involve hacking. Instead, people are pressured or tricked into sending money themselves. Once the payment is made through instant systems, it becomes very difficult to recover. The RBI feels that even a short delay could give users time to pause and think.
Other ideas on the table
Along with this, the RBI has suggested a few more safety steps
- Extra checks for seniors People above 70 and those with disabilities may need approval from a trusted person for transactions above ₹50,000
- Limit on incoming money A yearly cap of ₹25 lakh for individuals and small businesses with extra amounts held until explained
- Kill switch A feature to instantly turn off all digital payments in case of suspected fraud
What is next?
The RBI has asked for public feedback until May 8 2026. After that, it will decide on the next steps.
While this may slightly slow down payments, the goal is simple to help people avoid losing money to fraud.
