RBI Golden Hour Proposal: 1-Hour Delay on Large Digital Transfers
Why in the news
To fight scams in which victims are conned into paying fraudsters themselves, the RBI floated a deliberate pause on bigger online transfers in a discussion paper dated April 9, 2026.
Key facts
- Target: Authorised Push Payment (APP) fraud, where the user is tricked into authorising a payment.
- Trigger amount: transactions above ₹10,000.
- Mechanism: sender debited immediately; beneficiary credited only after one hour.
- Cancellation window: the sender can reverse the payment during that hour (the “kill switch”).
- Scope: chiefly P2P transfers; merchant payments largely exempt to protect convenience.
Safeguards proposed for vulnerable users
| Measure | Detail |
|---|---|
| Who is covered | Senior citizens aged 70 and above, and persons with disabilities |
| Trusted person check | A pre-nominated trusted individual may have to approve any transfer above ₹50,000 |
| Mule account scrutiny | Cap of ₹25 lakh annual credits on accounts lacking enhanced due diligence, to curb money laundering |
Background
- In APP fraud a scammer, through a fake call or message, persuades the victim to authorise the payment using their own PIN or OTP, so ordinary security does not stop it.
- The hour-long lag is meant to give the victim a mental pause to realise the scam.
Exam angle
- Numbers to remember: ₹10,000, 1 hour, ₹50,000, 70+ years, ₹25 lakh.
- Term: APP fraud; document type: discussion paper, not a final rule.