The Reserve Bank of India is considering stronger security checks in digital payments, including possible delays and additional verification layers, as fraud linked to UPI and instant payment platforms continues to rise sharply. The proposed measures are aimed at reducing losses in authorised push payment frauds, where users are manipulated into transferring money themselves.
In its 2025-26 annual report, the RBI indicated that it may introduce additional “frictions” in digital payment systems to strengthen customer protection and improve the chances of recovering money in fraudulent transactions. The central bank said existing safeguards such as additional factor authentication, payee name verification and tokenisation have not fully prevented fraudsters from exploiting users through social engineering.
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One-Hour Delay for High-Value Transactions Proposed
In a discussion paper released in April 2026, the RBI proposed a one-hour delay for digital transactions above ₹10,000 before the money is credited to the beneficiary’s account. The proposed pause is intended to give customers time to detect suspicious activity and stop fraudulent transfers before funds move beyond recovery.
The RBI has also suggested additional authentication mechanisms for vulnerable users, including senior citizens. Under one proposal, certain transactions may require confirmation from a trusted individual before being processed.
The central bank is also considering stricter scrutiny of accounts receiving unusually high-value credits, along with broader customer-controlled safeguards across digital payment platforms.
Fraudsters Exploit Social Engineering Tactics
The RBI noted that fraudsters are increasingly using psychological manipulation rather than purely technical attacks. Common methods include fake customer care calls, fraudulent investment offers, KYC update scams and “digital arrest” threats that pressure victims into transferring money voluntarily.
Data cited by the central bank shows that transactions above ₹10,000 account for nearly 45 percent of fraud cases by volume and 98.5 percent by value. Over the last five years, the total value of digital payment frauds in India has increased about 41 times, reaching nearly ₹23,000 crore.
Cyber security experts said short delays and extra checks could help reduce losses by giving users more time to identify suspicious activity. Former IPS officer and cyber crime expert Prof. Triveni Singh said most modern cyber frauds rely heavily on social engineering and psychological pressure.
Kill Switch and UPI Controls Under Consideration
The RBI has also proposed extending card-style security controls to UPI and other digital payment systems. At present, customers can switch domestic and international card transactions on or off. Similar controls for UPI could allow users to restrict or block certain types of transactions when needed.
Another major proposal is a “kill switch” mechanism, which would allow customers to instantly block all debit transactions from their accounts in case of suspected fraud, phone compromise or unauthorised access.
The RBI has also said it will continue expanding the international reach of UPI by linking India’s payment infrastructure with fast payment systems in other countries. The central bank said the aim is to support seamless, secure and cost-effective cross-border remittances and merchant payments while strengthening safeguards in the domestic digital payments ecosystem.
