The Reserve Bank of India (RBI) has proposed a new rule that could change how people send money through Unified Payments Interface (UPI). According to the proposal, UPI transfers above ₹10,000 may face a one-hour delay before the money is finally credited to the receiver. The move is aimed at reducing the growing number of online payment fraud cases across the country.
UPI has become one of the most popular payment methods in India due to its speed and ease of use. Millions of people use it daily to pay bills, shop online, and transfer money instantly. However, along with its popularity, cases of fraud have also increased. Many users have reported losing money after being tricked into sending funds to unknown accounts or approving fake payment requests.
The proposed one-hour delay is expected to act as a safety buffer, especially for first-time transactions or payments to new recipients. During this one-hour window, users will have the option to review the transaction details and cancel the transfer if they suspect fraud or notice any mistake. This step could help prevent losses in situations where users realize they have been misled shortly after making a payment.
Officials believe that most fraud cases happen quickly, with victims transferring money without enough time to think or verify details. By introducing a short waiting period for larger payments, the RBI hopes to give users extra time to react and protect their funds. Smaller transactions below ₹10,000 are likely to continue without delay, ensuring that daily payments such as groceries, travel fares, and utility bills remain smooth and fast.
Banks and payment platforms are expected to update their systems if the rule is approved. Users may receive alerts or notifications informing them about the delay and providing an option to cancel the transaction if needed. While some people may find the delay inconvenient at first, experts say the long-term benefits of preventing fraud could outweigh the minor inconvenience.
If implemented, this new rule could become an important step toward making digital payments safer and more secure for millions of users across India.
