UPI Transfers May Get Slower: RBI Plans 1-Hour Delay for Transactions Above ₹10,000

Kokila Chokkanathan
The reserve bank of india (RBI) is planning a major change to how UPI (Unified Payments Interdata-face) works in India. Under a new proposal, high-value UPI transactions above ₹10,000 may be delayed by up to one hour before they are completed. The move is aimed at reducing the rising cases of wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital payment fraud.

What is the New RBI Proposal?

As per the RBI’s latest discussion paper (April 2026), certain peer-to-peer wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital transfers above ₹10,000 may not be processed instantly.

Instead:

  • Money will be debited immediately
  • But it will be held for up to 1 hour
  • The sender will get a chance to cancel the transaction
  • The payment will complete only after the cooling period
📌 This rule is still a proposal, not a final regulation.

Why Is RBI Planning This Change?

The main reason is the sharp rise in UPI fraud and cyber scams in India.

RBI says most frauds happen through:

  • Fake customer care calls
  • Impersonation scams
  • Social engineering tricks
  • Urgent pressure-based transfers
Because UPI is instant, once money is sent:

  • It is very difficult to reverse
  • Fraudsters quickly withdraw or move funds
📊 RBI data shows that high-value transfers account for a major share of total fraud losses.

Which Transactions May Be Affected?

If implemented, the rule will likely apply to:

✔ Affected

  • UPI transfers above ₹10,000
  • Person-to-person payments (P2P)
  • First-time or unfamiliar transactions
❌ Not affected (expected)

  • Merchant payments (QR code shopping, bills)
  • Recurring payments (subscriptions, mandates)
  • Trusted or frequently used contacts (may be whitelisted)
How the 1-Hour Delay Will Work

During the waiting period:

Transaction is initiated

Bank temporarily holds the money

User gets time to verify or cancel

Bank may flag suspicious transfers

Payment completes after confirmation window

Other Safety Measures in the Proposal

Along with the delay, RBI is also considering:

  • A “kill switch” to instantly stop all wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital payments
  • Extra verification for large transactions
  • Protection features for senior citizens
  • Limits on suspicious or mule accounts
Why ₹10,000 Threshold?

RBI data suggests:

  • Many fraud cases involve amounts above ₹10,000
  • These transactions contribute to the majority of total fraud value
So, the threshold is designed to balance:

  • Safety
  • Convenience for daily small payments
Impact on Users

👍 Positive impact

  • More protection from fraud
  • Time to rethink mistaken transfers
  • Better control over large payments
👎 Possible downside

  • Slight delay in urgent high-value transfers
  • Change in “instant” UPI experience
  • Need to plan large payments in advance
Conclusion

The proposed 1-hour delay on UPI transfers above ₹10,000 is part of RBI’s effort to make digital payments safer amid rising fraud cases. While it may slightly reduce speed, it is designed to give users a crucial safety window to prevent financial loss.

👉 Since this is still a discussion paper, the final rules may change after public feedback.

 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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