RBI Proposes New Digital Payment Fraud Safeguards

PR No. 2026-2027/57; Dated: 09.04.2026

The Reserve Bank of India (RBI) has issued a discussion paper proposing enhanced safeguards in digital payments, aimed at mitigating fraud risks, particularly in Authorised Push Payment (APP) transactions.

1. Objective of the Proposal

The initiative seeks to:

• Strengthen fraud prevention mechanisms
• Protect vulnerable users
• Enhance trust and security in digital payments ecosystem

2. Key Proposed Safeguards

2.1 Time Lag for Certain APP Transfers

• Introduction of a cooling-off period for specific transactions
• Applicable to transfers to:

1. 1. Individuals
   2. Sole proprietorships
   3. Firms

• Aims to allow intervention in suspicious transactions

2.2 Additional Authentication for High-Value Transactions

• For vulnerable sections of society, such as senior citizens High-value transactions may require approval from a trusted person
• Adds an extra layer of security and oversight

2.3 Risk-Based Credit Controls

• Bank accounts may be allowed to receive credits commensurate with the nature of relationship with the bank
• Helps identify and restrict unusual or high-risk inflows

2.4 Customer-Induced Controls

Customers may be provided options to:

• Set transaction limits
• Enable additional security checks
• Restrict certain types of transactions

This empowers users to customise their own risk controls.

3. Regulatory Approach

• The proposals are part of a consultative discussion paper
• RBI is seeking feedback from stakeholders before finalising the framework

4. Conclusion

These proposed safeguards reflect RBI’s proactive approach towards strengthening digital payment security, balancing ease of transactions with enhanced fraud protection mechanisms in an increasingly digital financial ecosystem.

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