RBI Proposes 1-Hour Delay on Transfers Above ₹10,000 to Curb Fraud

The Reserve Bank of India has proposed a one-hour cooling-off period for fund transfers above ₹10,000 as part of a broader plan to tackle rising digital payment fraud, with incidents surging to 28 lakh cases involving nearly ₹22,931 crore in 2025.

The central bank outlined the measures in a discussion paper seeking stakeholder feedback until May 8, 2026, as it aims to strengthen safeguards amid rapid growth in digital transactions and increasing sophistication of fraud methods.

Cooling-Off Period Targets High-Value Fraud Risk

A key proposal recommends introducing a mandatory one-hour delay for account-to-account transfers exceeding ₹10,000 conducted by individuals, sole proprietors, and partnership firms. These transactions currently lack chargeback options, making recovery difficult in fraudulent cases.

The delay could be implemented at the sender’s end, the recipient’s end, or both. According to data from the National Cyber Crime Reporting Portal, such transactions account for around 45% of fraud cases by volume and nearly 98.5% of the total value involved.

The move is aimed at providing a critical intervention window to detect and prevent fraudulent transfers before funds are irreversibly moved.

Enhanced Checks for High-Value Transactions

For transactions exceeding ₹50,000, the RBI has proposed additional verification mechanisms, particularly for vulnerable users such as senior citizens and persons with disabilities. This may include approval from a pre-designated trusted individual.

Data shows that approximately 92% of fraud losses by value occur in transactions above this threshold, often linked to impersonation schemes and social engineering attacks.

These safeguards are designed to reduce exposure to high-value fraud while maintaining accessibility for legitimate users.

User-Controlled Security Features Introduced

The central bank has also suggested empowering customers with greater control over their banking activities. Proposed features include the ability to enable or disable specific digital payment channels, set transaction limits, and activate an emergency “kill switch” to immediately block all outgoing payments.

This mechanism could be accessible through mobile banking apps, internet banking platforms, bank branches, and IVR systems, enabling users to respond quickly in case of suspected fraud.

The proposal reflects a shift toward user-driven security frameworks in digital banking.

Measures to Address Mule Accounts

To curb the misuse of bank accounts for laundering fraudulent funds, commonly known as mule accounts, the RBI has proposed capping annual credits at ₹25 lakh for accounts that have not undergone enhanced due diligence.

Accounts seeking higher transaction limits would be required to provide additional verification related to business activity and funding sources.

This step aims to disrupt organized fraud networks that rely on such accounts to channel illicit funds.

Fraud Surge Driven by Digital Expansion

The proposals come amid a sharp rise in both digital payment adoption and fraud incidents. Over the past decade, digital transactions in India have grown at a compound annual rate of 53%.

At the same time, reported fraud cases have increased more than tenfold, rising from 2.6 lakh in 2021 to 28 lakh in 2025. The total value involved has surged from ₹551 crore to nearly ₹22,931 crore.

The increase has been attributed to evolving fraud techniques, including deepfakes, fake call centres, and coordinated mule account networks.

The RBI’s proposed framework seeks to balance transaction efficiency with stronger security controls as digital payments continue to scale rapidly across the economy.