RBI New Rules on Online Payments: 1-Hour Delay, Kill Switch and Limits to Curb Digital Fraud
RBI proposes new online payment rules including 1-hour delay, kill switch, and limits to prevent digital fraud in India. Details inside.
In response to rising cyber threats, the Reserve Bank of India (RBI) new rules on online payments aim to reduce digital fraud across the country. The RBI has proposed key measures including a 1-hour delay for new payees, a kill switch feature, and transaction limits, as part of a discussion paper released for public feedback.
Table of Contents
RBI Proposes 1-Hour Delay for New Online Payments
One of the major proposals under the RBI online payments rules is:
- Payments above ₹10,000 to a new beneficiary will be delayed by 1 hour
- During this time, customers can cancel the transaction if suspicious
This step is expected to help users prevent fraud before money is transferred.
Kill Switch Feature to Stop Digital Transactions
The RBI has also introduced a powerful “Kill Switch” feature:
- Users can block all digital transactions instantly
- Applies to UPI, internet banking, and card payments
- Useful in case of fraud or unauthorized access
This feature provides immediate control over accounts during emergencies.
Special Protection for Senior Citizens and Disabled
Under the RBI digital payment safety proposals:
- Individuals above 70 years or persons with disabilities
- Transactions above ₹50,000 require nominee approval
Funds will only be transferred after verification, ensuring extra safety.
Measures to Control Mule Accounts
To tackle fraud networks, RBI has proposed action against mule accounts:
- Annual credit limit capped at ₹25 lakh for suspicious accounts
- Helps prevent misuse of accounts used by cyber criminals
This move aims to strengthen financial security systems.
Restrictions for Newly Opened Bank Accounts
The RBI has also suggested:
- Limiting UPI and internet banking features in new accounts initially
- Gradual activation of services in phases
This step is expected to reduce fraud risks in newly created accounts.
Implementation After Public Feedback
The RBI online payment safety proposals are currently part of a discussion paper.
- Public and stakeholder feedback will be collected
- Final implementation will follow after review
The RBI new rules on online payments including 1-hour delay, kill switch, and transaction limits are designed to tackle rising digital fraud in India. If implemented, these measures will significantly improve the safety of online banking and UPI transactions for users across the country.
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