UPI Update: Will UPI Payments Exceeding ₹10,000 Take an Hour to Complete? What Is the New Rule?
India's digital payment system may soon undergo a minor yet significant change. The Reserve Bank of India (RBI) has proposed a plan to enhance security, given the continuous rise in cases of online fraud. Under this new plan, certain high-value transfers made via UPI will not be processed instantly. Instead, there may be a brief waiting period before the payment reaches the recipient. This measure will not affect the maximum amount of money individuals are permitted to send; it will merely impact the speed at which funds are delivered in specific instances. This proposal is currently under review. Before any final decision is taken, feedback has been solicited from banks, financial institutions, and the general public. This change could help further mitigate risks.
Can one send more than ₹10,000 via UPI?
Under the newly proposed rule, a one-hour 'cooldown period' (waiting time) would apply to UPI transactions exceeding ₹10,000; however, this proposal will not reduce your capacity to send money. You will continue to be able to transfer any amount exceeding ₹10,000, provided it remains within the existing limits established by your bank.
Will a one-hour delay apply to *all* UPI transfers exceeding ₹10,000?
No, this delay will not apply to every transaction. It is specifically intended to apply to person-to-person (P2P) transfers conducted via UPI—payments sent directly to another individual's bank account or UPI ID.
Furthermore—at the time of writing this article—this delay has been proposed only for payments being made to an individual for the *first time*, or when the transferred amount is substantial (i.e., exceeding ₹10,000). The government has stated that the objective of this new rule is to curb digital financial fraud, particularly in instances where users are deceived or coerced into transferring funds.
Will there be delays in payments for groceries, fuel, or online shopping? If you are planning to make payments exceeding ₹10,000 for groceries, fuel, or online shopping, such transactions will not face any delays, as they will be processed instantly. Person-to-merchant payments encompass scanning QR codes at shops, making payments at petrol pumps, or shopping on websites and mobile applications. The RBI has currently exempted such payments from the scope of this proposal.
**Rules for Trusted Contacts:**
According to reports, the government is also working on a mechanism that would allow you to bypass the one-hour delay applicable to payments exceeding ₹10,000. Users may be able to add specific individuals to a 'Trusted List.' However, this facility will be available only for individuals to whom you frequently send money, such as family members or service providers. You will likely see an option to mark them as 'Trusted'; once added, payments made to these individuals will be processed instantly, regardless of the transaction amount.
**When Will the RBI's UPI Rule Come into Effect?**
The RBI's proposed UPI rule is currently in the consultation phase and has not yet been implemented. The RBI is currently soliciting feedback from the general public regarding this new regulation, with May 8, 2026, set as the deadline for submissions. The RBI has stated that a final decision will be taken only after a thorough review of the received suggestions. Furthermore, if this regulation is approved, banks will be granted a specific timeframe to implement the necessary changes before the rule comes into force.
Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
