As India’s leading instant payments system scales new heights, it is also becoming a more significant target for fraud—prompting the Reserve Bank of India (RBI) to consider slowing down transactions in the name of security.

The proposed measure includes a one-hour delay for peer-to-peer (P2P) transactions exceeding 10,000 rupees (approximately $100).

This delay specifically targets authorized push payment (APP) frauds, instances where users are deceived into transferring money to criminals under false pretenses. India has experienced a sharp increase in such cases over recent years.

“The delay can be crucial for giving banks time to investigate transactions and determine their legitimacy when suspected fraud or social engineering is involved,” stated Suzanne Sando, Lead Analyst of Fraud Management at Javelin Strategy & Research. “It also offers consumers a second chance to reconsider the transaction. This delay can be vital in allowing individuals who might have doubts about the transaction time to reassess it after interacting with fraudsters.”

Additional Transaction Limits

Unified Payments Interface (UPI) has emerged as a dominant player in global instant payments, accounting for more than four out of every five real-time transactions worldwide. Retail transactions on UPI have seen significant growth, increasing from around $77 million in fiscal year 2022 to approximately $2.39 billion by FY2500—indicating both widespread adoption and the growing trend toward digital payments.

The proposed delay would apply only to P2P transfers; merchant payments would remain instantaneous. The RBI has also suggested adding an additional authentication layer for transactions above 50,000 rupees, potentially requiring verification through a trusted contact. Certain bank accounts might face limits on incoming funds unless they undergo further due diligence.

Other Approaches to the Problem

This is not RBI’s first effort to combat APP fraud. Last year, regulators introduced measures such as biometric authentication, often tied to Aadhaar, India’s national digital identity program.

Worldwide, other P2P platforms have employed various methods to address APP fraud. For instance, JPMorgan Chase has implemented safeguards on its Zelle network, including canceling certain payments flagged as high risk—such as those associated with suspected scam activity originating from social media.