In response to the escalating issue of digital payment frauds, the Reserve Bank of India (RBI) has released a discussion paper proposing several measures aimed at enhancing transaction security. One key proposal is the introduction of a one-hour lag for authorized push payments (APP) exceeding ₹10,000 (approximately $120 USD). This delay would allow customers to cancel transactions and enable banks to identify anomalies before finalizing payments. Currently, transactions over ₹10,000 represent 45% of fraud cases by volume and a staggering 98.5% by value.

Additionally, the RBI suggests that vulnerable individuals, such as those over 70 years old or with disabilities, can appoint a 'trusted person' to provide an extra layer of authentication for high-value transactions over ₹50,000 (around $600 USD). This measure aims to protect those at higher risk of fraud while maintaining flexibility for other users.

Other proposals include aligning permissible credits with a customer’s verified financial profile under Know Your Customer (KYC) norms and implementing a ceiling of ₹25 lakh (approximately $30,000 USD) annually on inflows for accounts without enhanced due diligence. The RBI also discusses extending account-level controls, allowing customers to manage their digital payment settings actively, and introducing a 'kill switch' to disable all digital payment activities instantly. The RBI is seeking public feedback on these proposals until May 8, 2026, before finalizing any guidelines.