In a move to curb rising digital fraud, the Reserve Bank of India has released a discussion paper proposing additional safeguards for digital payments and bank accounts. The proposals aim to improve customer protection, reduce mule account misuse, and strengthen authentication for vulnerable users. RBI has invited public comments through its Connect 2 Regulate platform till 8 May.
Rising Digital Fraud Cases
Digital fraud has become a major financial crime concern in India. Data from the National Cyber Crime Reporting Portal shows that around 28 lakh cyber fraud cases were reported in 2025, involving losses of about ₹22,931 crore. The scale of such frauds has prompted regulators to consider stricter controls for digital transactions.
One-Hour Cooling Period
RBI has proposed a one-hour time lag for digital payments above ₹10,000. During this period, the payer’s bank would provisionally debit the customer’s account. The customer would retain the option to cancel the transaction for any reason within this window. This measure is intended to give users time to detect and stop suspicious transfers.
Extra Protection for Vulnerable Users
The discussion paper also suggests additional authentication by a trusted person for senior citizens and persons with disabilities. This trusted individual would act as an extra layer of verification for high-value transactions. RBI has also proposed digital payment controls at the account level, including a switch on/off facility for payment modes and transaction limits for different types of transfers.
Action Against Mule Accounts
To prevent bank accounts from being used as mule accounts for routing fraud proceeds, RBI has proposed limits on aggregate credits in accounts without a satisfactory review of business relationships. The measure is aimed at improving scrutiny of suspicious account activity and disrupting fraud networks.
Last Modified: April 28, 2026