RBI may introduce one-hour wait for online transactions above Rs 10,000: What users should know

The Reserve Bank of India (RBI) is considering a proposal that could make customers wait for up to one hour before certain online money transfers exceeding Rs 10,000 are completed.

The proposed rule is aimed at preventing digital payment fraud and is expected to apply only to person-to-person (P2P) transactions, according to a report by ET Now.

If implemented, the measure could give customers additional time to identify suspicious transfers and stop money from reaching fraudulent accounts. The RBI is considering Rs 10,000 as the threshold, as most digital payment transactions are below this amount, sources told ET Now.

The proposed waiting period is expected to cover P2P transfers above Rs 10,000. This means payments made by individuals to other individuals could be affected, while the proposal is not currently expected to cover all digital transactions.

The RBI is also considering allowing customers to whitelist certain beneficiaries. Such approved recipients could be exempted from the proposed waiting period.

Why is the RBI considering a one-hour delay?

The measure is intended to address cases in which fraudsters manipulate or trick people into transferring money to fraudulent accounts. A waiting period could give customers an opportunity to recognise a suspicious transaction and take steps to prevent the transfer.

The proposal follows a discussion paper released by the RBI in March this year, which outlined several measures to strengthen safeguards against digital payment fraud. Introducing a one-hour time lag for transactions exceeding Rs 10,000 was among the suggestions.

The final rules, including the transactions covered and the implementation process, will depend on the RBI's decision after reviewing the feedback.