Mumbai, April 9 (NationPress) The Reserve Bank of India (RBI) has proposed a discussion paper outlining four potential strategies to enhance security in digital transactions. A key recommendation is to implement a one-hour delay for authorized push payments exceeding Rs 10,000, aimed at combating the rise in fraud which reached a staggering Rs 22,930 crore in 2025.

The remaining three strategies suggest requiring additional authentication from a trusted individual for high-value transactions by senior citizens, limiting large credits to accounts that have passed further scrutiny, and enabling customer-driven controls.

Under the first strategy, banks would need to pause account-to-account transfers exceeding Rs 10,000 for one hour at the payer's end, allowing customers the option to cancel during that period.

If a transaction raises suspicions, banks must obtain reconfirmation from the payer before proceeding. However, payments to merchants, e-mandates, NACH transactions, and cheques would be exempt from this delay. Customers have the flexibility to whitelist certain payees to avoid the hold-up.

The RBI highlighted that transactions over Rs 10,000 account for approximately 98.5% of the total fraud value, despite representing only around 45% of reported fraud cases by volume, thus validating the threshold as an effective preventive measure.

Current digital fraud schemes frequently do not involve direct breaches of technical systems. Instead, fraudsters often utilize social engineering tactics, impersonation, and coercion to manipulate victims into making transactions, a form of crime referred to as Authorised Push Payment (APP) fraud. Once money is transferred through rapid channels like UPI or IMPS, recovery is exceedingly challenging.

As noted in the paper, "Fraudsters typically create urgency and exert ongoing psychological pressure to hinder victims from thinking critically. Implementing a lag at the payer's end disrupts this psychological hold."

The additional measures proposed include mandating individuals aged 70 and older, along with persons with disabilities, to designate a "trusted person" for authentication on transfers exceeding Rs 50,000. This group represents nearly 92% of the reported fraud value to NCRP.

The second strategy proposes capping annual aggregate credits for individual and small business accounts at Rs 25 lakh. Any amounts surpassing this limit would be classified as "shadow credit," accessible only after the account holder provides the bank with validation of the transaction's legitimacy. If no explanation is given within 30 days, the funds will revert to the sender.

The final proposal introduces a "kill switch," enabling customers to swiftly deactivate all digital payment channels linked to their accounts in one action, a feature already in use in Singapore and being implemented by several banks in Australia.

The RBI stated that these options aim to achieve the overarching goals of introducing a delay in specific digital payment categories (through process modifications or additional due diligence) to provide customers and Payment System Operators (PSOs) with the necessary time to prevent fraudulent transactions and the rapid movement of proceeds, while also empowering customers with tailored controls.

While acknowledging the trade-offs, the RBI noted that an enforced lag may conflict with the instant payment design principle and could confuse users. Additionally, there is a risk that fraudsters may pressure victims into whitelisting transactions, diminishing the effectiveness of this mechanism.

Stakeholders are invited to share their feedback via the RBI's Connect 2 Regulate portal until May 8. The central bank indicated it would consider issuing draft guidelines following the review of these comments.