RBI Proposals To Improve Digital Payment Security In India
  • Digital payments in India experience continuous growth which indicates increasing adoption by users. The same time shows an upward trend in digital fraud incidents. The Reserve Bank of India (RBI) established new proposals to help decrease these security threats.
  • The RBI shared these ideas in a discussion paper. Final rules will depend on public feedback. The main focus of the system operates to give users more authority while it protects digital transactions from fraudulent activities.

One-Hour Delay for New Beneficiaries

  • The RBI proposes a delay for high-value payments to new beneficiaries.
  • Transactions that exceed ₹10,000 will be processed after one hour. The delay applies only to newly added beneficiaries.
  • The waiting period allows users to check their transaction. The user can cancel the payment before it completes if they find any problem.
  • The RBI proposes a kill switch feature for all bank customers. The kill switch option lets users halt all digital payment operations through a single command. The block applies to UPI net banking and card transactions.
  • The system lets users respond to security threats when they recognize potential fraudulent behavior. The system lets users respond to security threats when they recognize potential unauthorized access.

Extra Protection for Elderly and Disabled Users

  • The RBI includes additional security measures to protect people who belong to vulnerable groups.
  • The rule applies to users who are 70 years or older and to people with disabilities. Transactions that exceed ₹50,000 require nominee approval.
  • The nominee must confirm the transaction before the funds can be transferred. The procedure helps protect sensitive accounts from fraud attempts.
  • The fraud networks use mule accounts as tools to transfer illegal money across borders. Criminal organizations operate these accounts which belong to innocent people.
  • The RBI proposes the following measures to prevent account exploitation. The RBI proposes the following measures to prevent account exploitation. The RBI set a yearly credit limit of ₹25 lakh for accounts that do not complete the entire verification process.
  • The restriction enables authorities to detect suspicious accounts and maintain control over them.

Limited Features for New Bank Accounts

The RBI plans to restrict services in newly opened accounts.

  • UPI and internet banking remain disabled by default
  • Users receive only basic features at the start

Banks may enable full services after proper verification. This approach aims to reduce fraud during the early stage of account use.