UPI Transfers May Get Slower: RBI Plans 1-Hour Delay for Transactions Above ₹10,000
RBI Proposes Cooling-Off Period for High-Value Digital Transfers
Making a ₹10,000 UPI transfer could soon come with an unexpected twist—a waiting period of up to one hour. The Reserve Bank of India (RBI) is reportedly considering a new rule that may introduce a delay in processing certain high-value digital transactions.
The move is aimed at strengthening user protection as digital payment fraud cases continue to surge across the country. If implemented, this proposal could significantly change the way millions of Indians use UPI and other instant payment systems.
How the Proposed Rule Will Work
Under the RBI’s proposal, transactions exceeding ₹10,000 made through UPI or other account-to-account digital channels may not be processed instantly. Instead, banks could hold the transaction for up to one hour before completing it.
During this “cooling-off” period:
- Users may get an option to review or cancel the transaction
- The system will act as a buffer against impulsive or fraudulent transfers
- Banks will have time to flag suspicious activity
This delay is not meant to disrupt everyday payments but to introduce an additional safety layer for larger transfers.
Why RBI Is Considering This Change
India has witnessed a sharp rise in digital payment frauds over the past few years. Reports suggest that:
- Fraud cases jumped from around 2.6 lakh in 2021 to nearly 28 lakh by 2025
- The total fraud amount surged from about ₹551 crore to over ₹22,900 crore
According to RBI, many of these frauds are not due to system vulnerabilities but rather social engineering tactics, where scammers trick users into transferring money voluntarily via calls, messages, or fake links.
By introducing a short delay, users get crucial time to:
- Reconsider suspicious transactions
- Verify the recipient
- Avoid panic-driven decisions
Transactions That May Remain Unaffected
The proposed rule is expected to exclude certain types of payments to ensure daily transactions remain smooth. These may include:
- Merchant payments (payments made at shops or businesses)
- E-mandates (automatic recurring payments)
- NACH transactions (bulk banking transactions)
- Cheque-based payments
Additionally, users may be able to whitelist trusted beneficiaries, ensuring that transfers to known contacts are processed without delay.
Additional Safety Measures Under Consideration
Apart from the one-hour delay, the RBI is also exploring other safeguards to enhance digital payment security:
- Approval for large transactions involving senior citizens (above 70 years) or differently-abled individuals
- Enhanced scrutiny for accounts receiving over ₹25 lakh annually
- Introduction of a “kill switch” feature, allowing users to instantly disable all digital payment modes in case of suspected fraud
These measures aim to create a more secure digital payment ecosystem without completely compromising convenience.
Impact on Users and Digital Payments
While the proposed rule could significantly reduce fraud risks, it may also affect the core appeal of UPI—instant money transfers.
For users:
- It could mean slightly slower transactions for higher amounts
- But also greater control and security
For the ecosystem:
- It may help build trust in digital payments
- But could face resistance from users accustomed to real-time transfers
Public Feedback Open Till May 8
The RBI has invited feedback from stakeholders and the general public on this proposal until May 8, 2026. The final decision will be taken after reviewing suggestions and assessing the broader impact.
Final Takeaway
The RBI’s proposal to introduce a 1-hour delay on UPI transactions above ₹10,000 reflects a growing focus on security over speed. While it may slightly inconvenience users, the move could play a crucial role in curbing rising digital frauds and protecting hard-earned money.
As digital payments continue to dominate India’s financial landscape, striking the right balance between convenience and safety will remain key.
