RBI New Digital Rules: The Reserve Bank of India (RBI) has released a discussion paper outlining critical reforms to strengthen the security of digital transactions. As online fraud cases increase across the country, the central bank aims to provide users with more control over their financial data and assets through six primary proposed measures.
A significant proposal includes a one-hour cooling period for transfers exceeding 10,000 to new recipients. This mandatory hold allows users a window to cancel or verify transactions if they suspect a fraudulent request. To maintain convenience, users can still bypass this delay by adding contacts to a “trusted” list for recurring payments.
To protect vulnerable demographics, the RBI suggests an additional safety layer for senior citizens over 70 and persons with disabilities. Under these rules, any transaction above 50,000 would require the explicit approval of a pre-registered trusted individual. Furthermore, changing this designated contact would involve a 24-hour waiting period to prevent unauthorized access by scammers.
A new emergency “kill switch” feature is also on the horizon. This tool will allow customers to instantly disable all digital banking services, including UPI, debit cards, and net banking. This feature is designed for immediate use during phone loss or when unauthorized access is detected, providing a swift defense against account draining.
The RBI is also targeting “mule accounts,” which are often utilized by fraud networks to move illegal funds. The proposal calls for stricter verification processes and continuous monitoring to identify accounts linked to fake call centers and deepfake scams. This move aims to dismantle the infrastructure used by cybercriminals.
Under the new guidelines, digital banking features like UPI and internet banking may be disabled by default for all new accounts. Customers would need to manually activate these services, reducing the risk of fraud during the initial account setup phase. This “opt-in” approach ensures that only active and aware users utilize digital payment tools.
Finally, the RBI has emphasized the need for faster alert systems and simplified complaint mechanisms. Banks will be required to send real-time alerts for suspicious activities and streamline the reporting process for victims. These combined measures seek to create a more resilient digital ecosystem that prioritizes consumer safety over transaction speed.
