RBI Proposes New UPI Rule Delay for Payments Above 10000 to Curb Digital Fraud

The Reserve Bank of India has proposed a major change to UPI payment rules aimed at reducing digital fraud and protecting users from cybercrime. Under the new proposal, transactions exceeding 10000 between individuals may not be processed instantly.

According to the plan, peer to peer payments made through platforms like PhonePe Google Pay and Paytm above the specified limit will be subject to a mandatory one hour delay before the amount is credited to the recipient’s account. The move is intended to give users a buffer window to act in case of accidental transfers or fraud.

Officials stated that this one hour cooling period will allow users to cancel transactions if they realize they have been misled or tricked. The decision is especially focused on safeguarding senior citizens and other vulnerable users who are often targeted by cyber fraudsters.

However, the rule will not apply to payments made to verified merchants or businesses. Such transactions will continue to be processed instantly without any delay, ensuring that regular commercial activities are not affected.

In addition to this, the RBI has also suggested introducing a whitelist feature. This will enable users to mark trusted accounts such as family members or frequent contacts. Payments to these selected accounts will not face any delay even if the amount exceeds 10000.

The central bank has invited public feedback on these proposals until May 8, indicating that the rule is still under consideration. The move comes at a time when cybercrime cases have seen a sharp rise in recent years, prompting the need for stronger safeguards in digital transactions.

If implemented, the new rule could significantly change how high value UPI payments are handled, adding an extra layer of security for millions of users across the country.