RBI to Tighten Rules to Stop Online Fraud, Big Relief for Senior Citizens
RBI New Rules: The Reserve Bank of India (RBI) is contemplating new strategies to combat online fraud, which include delays on substantial digital transactions and increased scrutiny on payments made by senior citizens, as stated in a discussion paper published…
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RBI New Rules: The Reserve Bank of India (RBI) is contemplating new strategies to combat online fraud, which include delays on substantial digital transactions and increased scrutiny on payments made by senior citizens, as stated in a discussion paper published on Thursday, according to news agency Reuters.
Delays on large transactions, monitoring of fraud
The incidence of digital payment fraud has surged dramatically in the nation. New tactics such as fraudulent call centers, mule accounts, and deepfakes are being employed. In response, the RBI has suggested implementing a one-hour delay for transactions that exceed ₹10,000.
This regulation will also be applicable to rapid systems like UPI, enabling customers to halt transactions. However, it will not be applicable to merchant payments.
Instant small payments, alerts on suspicious
The RBI has indicated that during this delay period, funds will be temporarily debited, and an immediate alert will be triggered if a transaction seems suspicious. Nevertheless, small transactions will continue to be processed swiftly as usual, ensuring that daily payments remain unaffected. According to the statistics, fraud cases escalated tenfold to 2.8 million from 2021 to 2025. Consequently, the financial loss reached 230 billion rupees.
Separate security for the elderly
The RBI is also working on implementing special safeguards for elderly and vulnerable customers. Under the proposed plan, individuals over 70 and those with disabilities may be required to secure approval from a “trusted person” for transactions that exceed Rs 50,000. However, they will have the choice to opt out.
What will happen next?
There are also proposals to impose limits on specific accounts and to introduce a “kill switch” feature that would enable all digital payments to be halted immediately if necessary. The RBI has requested feedback on this matter by May 8th, after which further regulations will be established.
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