The Reserve Bank of India is planning to introduce a one-hour delay for some online payments to help reduce online fraud.
In a discussion paper released recently, the apex bank has proposed a mandatory delay of up to one hour on transactions over ₹10000 via digital payment methods like UPI & IMPS.
This proposed framework will initially apply to person-to-person (P2P) transactions. Payment to the merchant or any other business will be intact.
The RBI also suggested that there will be features like allowlisting, which will allow users to add a trusted beneficiary. Transactions on such a beneficiary account will be out of the waiting period. This way, RBI maintains security with user convenience.
Also, the RBI proposed enhanced security for vulnerable users, including senior citizens.
The proposal came at a time when cyber frauds are at a high.
