RBI proposes one-hour delay for UPI and other transfers above Rs 10,000 to curb scams

The Reserve Bank of India is exploring a proposal to introduce a one-hour delay for digital transactions above Rs 10,000. This would apply to UPI as well as other online fund transfer systems.

The idea is to create a mandatory cooling-off period before high-value transfers are fully processed.

Online scams and frauds have increased significantly, often involving instant transfers that leave users with little time to react once money is sent.

By introducing a delay, RBI aims to give users a chance to identify suspicious transactions and potentially cancel them before the funds are irreversibly transferred.

Under the proposed system, transactions above Rs 10,000 may not be completed instantly. Instead, they could remain in a pending state for up to one hour.

During this period, users may have the option to cancel or flag the transaction if they suspect fraud.

• Delay applies only above a certain threshold (Rs 10,000)
• Cooling-off period of up to one hour
• Potential option to cancel transactions during the delay
• Could be implemented across UPI and other digital payment systems

If implemented, this change could affect how quickly users can send larger payments. While smaller transactions may remain instant, higher-value transfers could take longer to complete.

However, the added delay could significantly improve safety and reduce losses from fraud, especially for less tech-savvy users.

The proposal is currently under consideration and has not yet been officially implemented. RBI is expected to consult stakeholders and evaluate the impact before making a final decision.