RBI moves to harden payments

India’s central bank has proposed new brakes on digital payments, including a one-hour delay on some transfers above 10,000 rupees. (rbi.org.in) The Reserve Bank of India published its discussion paper on April 9 and asked for public comments by May 8, 2026. Reuters reported the package includes extra authentication for some users, caps on suspicious accounts and a one-click “kill switch” to freeze digital payments. (rbi.org.in) (economictimes.indiatimes.com) The proposed delay would apply to account-to-account transfers above 10,000 rupees made by individuals, sole proprietors and partnership firms, where no chargeback mechanism exists after fraud. The paper also considers whether the lag should sit at the sender’s end, the receiver’s end, or both. (economictimes.indiatimes.com) For senior citizens and persons with disabilities, the Reserve Bank of India has proposed an extra verification layer for transfers above 50,000 rupees. Reuters reported that could include approval from a pre-designated trusted person before the money moves. (economictimes.indiatimes.com) The central bank is moving after a decade in which digital payments grew rapidly and fraud reports climbed with them. The Reserve Bank of India said the paper follows its February 6, 2026 Statement on Developmental and Regulatory Policies on safer digital payments. (business-standard.com) (rbi.org.in) Reuters said reported fraud cases rose from 260,000 in 2021 to 2.8 million in 2025, while the value jumped from 5.51 billion rupees to about 229.31 billion rupees. The same report said transfers above 10,000 rupees made up about 45% of fraud cases by volume and 98.5% by value. (economictimes.indiatimes.com) Another proposal targets “mule” accounts, which fraudsters use to receive and move stolen money. Reuters said the Reserve Bank of India wants to cap annual credits at 2.5 million rupees for accounts that have not gone through enhanced due diligence, with extra checks required above that level. (economictimes.indiatimes.com) The paper would add new controls on top of rules already in force. India’s 2025 authentication directions say digital payment transactions must meet broad authentication principles for banks and non-banks in the payment chain, after years in which one-time passwords became the standard extra check. (rbi.org.in) For banks, payment apps and merchants, the proposal points to slower settlement on some transfers, more identity checks on riskier users and new customer controls that must work across mobile apps, internet banking, branches and interactive voice response systems. The Reserve Bank of India has not issued final rules yet; it is still collecting feedback through May 8. (economictimes.indiatimes.com) (rbi.org.in)