The Reserve Bank of India has proposed a new framework to strengthen safeguards against rising digital payment frauds. The measures aim to balance convenience with enhanced security in India’s fast-growing digital ecosystem.
Among the key proposals is a “kill switch” that allows customers to instantly disable all digital payment modes such as UPI, cards, and net banking in case of suspicious activity. The RBI has also suggested a one-hour cooling-off period for transfers above ₹10,000, giving users time to cancel or report unauthorized transactions.
Other recommendations include stricter authentication for high-value payments, limits on aggregate credits to prevent misuse of mule accounts, and a trusted beneficiary designation system to allow faster transfers to verified accounts.
The central bank has invited public feedback on these proposals until May 8, 2026, after which draft guidelines may be finalized. The initiative underscores RBI’s commitment to protecting consumers while ensuring the continued growth of India’s digital payments sector.
