RBI Proposes New Safeguards Against Digital Payment Frauds

• •RBI proposes safeguards to address the rise in digital payment frauds.
• •New measures include transaction delays and additional authentication for vulnerable users.
• •Fraud tactics involve social engineering, with senior citizens being a primary target.

The Reserve Bank of India (RBI) has proposed new measures to combat the rise in online frauds associated with digital transactions. In a discussion paper released on April 11, 2026, the RBI outlined several safeguards, including a one-hour delay for certain transactions, mandatory additional authentication for vulnerable users, and caps on bank account credits. The paper highlights that digital payment frauds have surged, with various tactics employed by fraudsters, including social engineering and impersonation scams. Vulnerable groups, particularly senior citizens, are disproportionately affected by these frauds. The RBI aims to implement stricter controls on bank accounts and introduce a 'trusted person' mechanism for high-value transactions exceeding ₹50,000. These measures are intended to enhance security and reduce losses from impersonation and coercion-based frauds. The RBI's proposals come in response to alarming statistics from the National Cyber Crime Reporting Portal, indicating a sharp increase in reported fraud cases over the past five years.