UPI Payments Above Rs 10,000 May Soon Have A One-Hour Delay: RBI Explains Why

The RBI wants to pause UPI payments above Rs 10,000 for up to one hour. Here's what that means for your everyday transfers and why the regulator thinks it's necessary.

Reserve Bank of India has put out a discussion paper proposing a delay of up to one hour on UPI payments above Rs 10,000.

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Key points generated by AI, verified by newsroom

• RBI proposes one-hour delay for UPI payments over Rs 10,000.
• This 'golden hour' aims to curb increasing digital fraud.
• Senders can cancel transactions within this delay window.

India's Unified Payments Interface has transformed how people send and receive money, making instant transfers a part of everyday life, from grocery runs to splitting bills. But that instant nature of UPI may soon change, at least for certain transactions. 

The Reserve Bank of India has put out a discussion paper proposing a delay of up to one hour on UPI payments above Rs 10,000, specifically for person-to-person transfers. The move is aimed at tackling the growing problem of digital fraud in the country.

How Will The Proposed 1-Hour UPI Payment Delay Work?

Under the proposal, if a person sends more than Rs 10,000 to another individual via UPI, the amount will be deducted from the sender's account immediately, but the recipient will only receive it after one hour. During this one-hour window, the sender will also have the option to cancel the transaction.

The RBI refers to this period as a "golden hour," giving users time to reconsider and potentially stop a payment if they suspect something is wrong.

It is worth noting that this rule will only apply to P2P, that is, person-to-person transfers. Payments made by scanning QR codes at shops, merchants, or any point-of-sale setup will not be affected. Auto-debit and subscription-based payments will also continue without any change.

Why Is The RBI Looking To Introduce This Change?

Digital fraud has been a persistent concern in India's growing payments ecosystem. In most fraud cases, money moves through several accounts within minutes and is quickly withdrawn as cash, making it nearly impossible to recover.

By introducing a delay, the RBI hopes to create a short buffer period where fraudulent transactions can be identified and stopped before the money reaches the wrong hands. The proposal is currently at the discussion stage, and no final decision has been made yet.

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