The Reserve Bank of India (RBI) has proposed a series of sweeping safeguards to curb rising frauds in digital payments, including introducing delays in high-value transactions, additional authentication layers for vulnerable users and a 'kill switch' to block accounts in emergencies. The
discussion paper released by RBI, outlines four key safeguards, including delayed processing of certain payments, additional authentication for vulnerable users, tighter scrutiny of high-value credits and enhanced customer-controlled security features.
Among the key proposals, RBI has suggested introducing a one-hour delay for account-to-account transfers above ₹10,000 to give users time to review or cancel potentially fraudulent transactions, while keeping low-value and merchant payments unaffected and allowing whitelisting of trusted beneficiaries. It has also proposed additional safeguards for vulnerable groups such as senior citizens, requiring authentication from a trusted person for transactions above ₹50,000.
To curb misuse of accounts for fraud, the central bank has recommended capping annual credits at ₹25 lakh for certain accounts without enhanced verification, with excess funds subject to scrutiny before use. Further, RBI has emphasised strengthening customer control by enabling users to manage transaction limits, switch payment modes on or off, and activate a ‘kill switch’ to immediately block all digital transactions in case of suspected fraud.
According to RBI, digital payments in India have grown rapidly over the past decade, with transaction volumes rising 38 times and values more than tripling. However, this expansion has been accompanied by a sharp increase in fraud cases, particularly those involving 'authorised push payments' (APP), where users are manipulated into transferring money themselves.
Data from the national cyber crime reporting portal (NCRP) highlights the scale of the problem. Reported fraud cases rose from about 260,000 in 2021 to 2.8mn (million) in 2025, while the value involved surged to over ₹22,900 crore in 2025.
RBI says such frauds are typically driven by social engineering tactics, including impersonation, coercion and deepfake-enabled scams, leaving victims with limited recovery options due to the instant nature of digital transactions.
One of the key measures under consideration is the introduction of a time lag for certain digital transfers. RBI has proposed a one-hour delay for transactions above ₹10,000, particularly in account-to-account transfers, to provide users with a window to reconsider or cancel payments.
The idea is based on the 'golden hour' principle in fraud prevention, where early intervention can prevent the dissipation of funds. During this period, banks may flag suspicious transactions and seek reconfirmation from customers before execution.
To maintain ease of use, low-value payments and merchant transactions are expected to remain unaffected, while users may also be given the option to bypass the delay through whitelisting of trusted beneficiaries.
The discussion paper also proposes additional protections for vulnerable groups, including senior citizens and persons with disabilities. For transactions above ₹50,000, such users may be required to obtain authentication from a 'trusted person' designated by them.
This measure is aimed at addressing targeted scams that exploit emotional pressure and impersonation tactics, which often result in significant financial losses for these groups.
To tackle the misuse of bank accounts as conduits for fraud, the RBI has suggested introducing limits on the amount of money that can be credited to accounts without additional verification. A ceiling of ₹25 lakh in annual credits has been proposed for accounts classified as low-risk, beyond which funds may be held temporarily until the bank verifies their legitimacy.
Such 'shadow credit' mechanisms are intended to prevent mule accounts from being used to rapidly move illicit funds across the system.
In a move to empower users, RBI has proposed expanding customer-controlled security features across digital payment channels. These include the ability to enable or disable specific payment modes and set transaction limits at the account level.
Additionally, a 'kill switch' facility could allow customers to instantly block all digital transactions in case of suspected fraud. Reactivation would require stringent verification, either digitally or through physical authentication at a bank branch.
The central bank highlighted that several measures are already in place, including two-factor authentication (2FA), tokenisation of card data, transaction controls and AI-based monitoring tools such as Mulehunter.AI. It is also working on a digital payment intelligence platform using artificial intelligence (AI) and machine learning to assess transaction risks in real time.
Despite these efforts, RBI acknowledged that fraudsters continue to exploit human vulnerabilities rather than technical loopholes, necessitating additional layers of protection.
RBI has invited comments on the feasibility and effectiveness of the proposed measures, including thresholds, implementation challenges and potential impact on customer convenience. Stakeholders can submit their feedback through the
‘Connect 2 Regulate’ platform by 8 May 2026.
The central bank says it will consider issuing draft guidelines after reviewing the responses.
As regulators grapple with the challenge of curbing fraud without undermining the speed and ease that have driven widespread adoption, the proposals from RBI signal a shift towards balancing convenience with security in India’s fast-growing digital payments ecosystem.
