RBI proposes payment safeguards

India’s central bank has proposed a “kill switch” and built-in delays for some digital payments after a run of fraud cases. (rbi.org.in) The Reserve Bank of India published the discussion paper on April 9, 2026, and asked for public comments through May 8, 2026. Reuters reported the paper proposes a one-hour delay for some account-to-account “push” transfers above ₹10,000, with merchant payments exempted. (rbi.org.in) (msn.com) The paper also outlines a customer-controlled “kill switch” to block digital payments quickly, plus extra authentication for senior citizens and people with disabilities in higher-risk transactions. Reuters said the Reserve Bank is also weighing annual limits on newly onboarded or lightly verified accounts. (rbi.org.in) (msn.com) India’s payments system is now so large that small changes in timing can affect hundreds of millions of transactions. The Reserve Bank said retail digital payments grew from 162 crore transactions in 2012-13 to more than 16,416 crore in 2023-24. (rbi.org.in) That growth continued in the latest annual report. The Reserve Bank said payment and settlement systems grew 34.8% by volume in 2024-25, and digital transactions made up 99.9% of non-cash retail payment volume. (rbi.org.in) The fraud backdrop is broader than one app or one bank. In its 2024-25 annual report, the Reserve Bank said the amount involved in total frauds rose partly because 122 older cases worth ₹18,674 crore were reclassified and reported again after a Supreme Court-linked re-examination. (rbi.org.in) The central bank has been adding security controls for years, including card on-off controls, transaction limits and cyber-resilience rules for payment operators. The new paper extends that logic to instant bank transfers, where money can move before a victim realizes a scam is under way. (rbi.org.in 1) (rbi.org.in 2) The proposals are still at the consultation stage, not final rules. The next step is the Reserve Bank’s review of comments submitted by May 8, 2026, before it decides whether to turn the paper into binding regulation. (rbi.org.in)