The paper comes amid rapid growth in digital transactions in India, with volumes rising 38-fold over the past decade and values more than tripling.
However, the central bank noted that this expansion has been accompanied by sophisticated frauds, particularly those involving “authorised push payment” (APP) transactions where users themselves are manipulated into transferring funds.
Fraud trends prompt policy rethink
According to data cited in the paper, digital payment fraud cases reported on the National Cyber Crime Reporting Portal have risen sharply—from 2.6 lakh cases in 2021 to 28 lakh in 2025—while the value involved surged from ₹551 crore to over ₹22,900 crore.
The RBI observed that most frauds now stem from social engineering tactics such as impersonation, coercion, and deepfake-enabled scams, rather than technical breaches of payment systems. Given the instant nature of systems like UPI and IMPS, recovery of funds after such transactions remains limited.
Four key safeguards under considerationTo address these risks, the central bank has proposed four broad options and sought stakeholder feedback on their feasibility:Time lag for certain transactions
The RBI has proposed introducing a delay—potentially around one hour—for digital transfers above ₹10,000. This would give users a window to reconsider or cancel transactions and allow banks to flag suspicious activity before funds are moved. Low-value transactions would remain unaffected to preserve convenience.
Additional authentication for vulnerable users
For senior citizens and persons with disabilities, the RBI has suggested an added layer of verification for high-value transactions (above ₹50,000), involving a “trusted person” designated by the account holder. The measure aims to reduce fraud risks for more vulnerable segments.
Limits on credits to certain accounts
To curb misuse of bank accounts as “mule accounts,” the paper proposes placing a cap—illustratively ₹25 lakh annually—on credits to accounts without enhanced due diligence. Transactions beyond this threshold could be subject to additional verification before funds are made available.
Expanded user controls and ‘kill switch’
The RBI has suggested extending card-like controls across all digital payment modes, allowing users to enable or disable channels or set transaction limits. It has also proposed a “kill switch” feature to instantly block all digital transactions in case of suspected fraud.
Balancing security with convenience
The central bank acknowledged that while such measures could strengthen fraud prevention, they may also introduce friction in a payments ecosystem built on speed and ease. For instance, transaction delays could conflict with user expectations of instant payments, and additional verification layers may affect convenience.
At the same time, the RBI emphasised that visible safeguards could enhance user confidence, especially as fraud risks evolve alongside digital adoption.
Next steps
The discussion paper seeks feedback on the cost-benefit trade-offs, thresholds, and implementation challenges of each proposal. Based on responses, the RBI said it will consider issuing draft guidelines on additional anti-fraud measures.
Comments can be submitted through the RBI’s “Connect 2 Regulate” platform until May 8.
