In a significant move to safeguard citizens from the rising tide of cybercrime, the Reserve Bank of India (RBI) has proposed a mandatory 1-hour “cooling period” for online transactions exceeding ₹10,000. Under this new framework, account-to-account transfers via UPI or IMPS will not be completed instantly. Instead, the amount will be held for an hour, giving the sender a window to cancel the transaction in case of error or fraud.

The RBI data highlights a staggering reality: while transactions above ₹10,000 account for 45% of fraud cases, they contribute to a whopping 98.5% of the total financial loss. This “buffer time” is specifically designed to curb “social engineering” scams where victims are coerced into transferring large sums. For senior citizens over 70, the proposal even suggests mandatory approval from a ‘trusted person’ for transfers exceeding ₹50,000.

However, the central bank clarified that daily micro-payments at shops, subscriptions, and transfers to pre-approved “whitelisted” contacts will remain instant. This proactive measure aims to prioritize security over speed in high-risk scenarios. The RBI has invited public feedback on this proposal until May 8, after which a final decision on its implementation will be made.