Overview
- The Reserve Bank of India released a discussion paper proposing a one-hour delay for person-to-person transfers above 10,000 rupees on fast payment rails such as UPI.
- During the hold, the payer’s account would show a provisional debit and the customer could cancel the transfer if it looks suspicious.
- Routine use stays quick, with low-value payments left instant and merchant payments exempt because they already have dispute tools.
- Extra checks would protect vulnerable users, with seniors 70 and older and people with disabilities needing a trusted person to approve transfers above 50,000 rupees, with an opt-out likely.
- The paper also proposes a one-tap kill switch to disable all digital payments and annual account limits, citing a jump to 2.8 million fraud reports and 230 billion rupees in losses, and it invites public comments before any rules are drafted.