Reserve Bank of India is proposing targeted safeguards in UPI to reduce fraud without disrupting everyday payments.
The focus is on adding friction only in high-risk scenarios like new beneficiaries and low-KYC accounts.
For financial businesses, this signals tighter risk controls, stronger KYC, and more proactive fraud monitoring ahead.
Key Points (What’s Included)
- Cooling-off period: Up to 1-hour delay for transfers above ₹10,000 to new beneficiaries
- Senior citizen protection: Approval layer for ₹50,000+ transactions (opt-out available)
- Kill switch feature: Users can freeze and unfreeze digital transactions instantly
- Low-KYC restrictions: ₹25 lakh annual cap on incoming funds for non-enhanced KYC accounts
- Minimal impact on daily usage: Regular UPI payments, bills, and merchant transactions remain unaffected
- Fraud prevention focus: Designed to counter urgency-based scams and misuse of mule accounts
- NBFC implications: Stronger fraud detection, enhanced compliance, and improved customer communication required
