As India’s leading instant payments system scales new heights, it’s also becoming a bigger 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 (roughly $100).
The delay specifically targets authorized push payment (APP) frauds, in which users are tricked into transferring money to criminals under false pretenses. India has seen a sharp rise in such cases in recent years, with reported losses increasing significantly between 2021 and 2025. Real-time payment systems like the United Payments Interface (UPI) have been linked to a large majority of authorized push payment-related losses.
“The delay can be key to giving banks time to investigate a transaction and determine its legitimacy when there is suspected fraud or social engineering,” said Suzanne Sando, Lead Analyst of Fraud Management at Javelin Strategy & Research. “It also provides consumers with a second chance to stop and think. That delay can be critical in letting the fog clear for consumers who may have been questioning the transaction but felt pressured to complete it while in contact with the fraudster.”
Additional Transaction Limits
UPI has become a dominant force in global instant payments, accounting for more than four out five real-time transactions worldwide. Retail transactions on UPI have skyrocketed, rising from around $77 million in FY22 to roughly $2.39 billion in FY2500—reflecting both widespread adoption and the growing shift toward digital payments.
The proposed delay would apply only to P2P transfers; merchant payments would remain instant. The RBI has also suggested introducing an additional authentication layer for transactions above 50,000 rupees, potentially requiring verification through a trusted contact. Additionally, certain bank accounts could face limits on incoming funds unless they undergo further due diligence.
Other Approaches to the Problem
This isn’t RBI’s first attempt to combat APP fraud. Last year, regulators introduced measures, such as biometric authentication, often linked to Aadhaar, India’s national digital identity program.
Globally, other P2P platforms have taken different approaches to tackling APP fraud. For example, 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 on social media.
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