The Reserve Bank of India has proposed introducing a time lag for high-value digital transactions, particularly those above ₹10,000 sent to new payees, as part of efforts to curb rising digital fraud.
However, the proposal has drawn strong concerns from bankers and fintech companies, who argue that such delays could disrupt the real-time nature of digital payments and affect user convenience.
Industry experts believe the move may reduce the efficiency of platforms like UPI, which thrive on instant transactions, and could potentially push some users back toward cash-based payments.
The RBI’s intent is to provide users a cooling-off period to detect and cancel fraudulent transactions, amid a rise in online scams and financial fraud.
While the proposal includes exemptions for merchant payments and trusted beneficiaries, stakeholders feel a balance must be struck between security and seamless user experience in India’s fast-growing digital payments ecosystem.
