Wait 1 Hour For a UPI Transaction? Check Everything About The RBI's New Proposed Rule in Digital Transaction

India's digital payments system may soon see a major change, as the Reserve Bank of India (RBI) is considering introducing a 1-hour delay for certain UPI transactions. The main motive behind this strengthening security in digital transactions and tackling the rising cases of online payment fraud in India.

As per the proposal UPI payments above Rs. 10,000, especially person-to-person transfers, may not be processed instantly. Instead, the sender's account will be debited immediately, but the money will be held for up to one hour before being credited to the recipient. If implemented this could have a big impact on how users experience UPI payments in India, particularly for high-value transfers.

RBI's New UPI Rule

Under the RBI's plan, a cooling-off period of one hour may be introduced for select transactions. During this time, users could get an option to review or even cancel the transfer if they realise a mistake or suspect fraud.

The central bank's focus is not to slow down all digital payments, but to create a safeguard for transactions that carry higher risk. Routine UPI payments, such as small transfers or daily usage, are unlikely to be affected.

Reason Behind This Change

Due to a sharp rise in UPI fraud cases and digital payment scams across India RBI has come up with. One of the biggest concerns is authorised push payment fraud, where users are tricked into sending money themselves, often under pressure or deception.

By introducing a delay, the RBI is planning togive users time to think, verify, and cancel transactions if needed. This extra layer of security could help prevent irreversible losses in online payments India and improve trust in the UPI system.

Who Will Be Affected by the New UPI Rule?

The proposed rule is expected to apply mainly to person-to-person UPI transactions above Rs. 10,000, including some business-related transfers by individuals such as sole proprietors or partnerships. However, merchant payments, like scanning QR codes at shops or paying for groceries, are likely to remain instant.This means that everyday UPI transactions, such as paying for food, cabs, or small purchases, will continue without disruption, while only larger transfers may see the delay.