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Banks Back RBI's Anti-Fraud Payment Delay
Indian banks generally agree with the Reserve Bank of India's (RBI) plan to add a time delay for large digital payments as a way to fight growing fraud. The RBI's paper proposed a one-hour pause on account-to-account transfers over ₹10,000. The banking sector broadly accepts this idea in principle.
Banks Lobby for Higher ₹25,000 Limit
However, banks are asking the RBI to raise the proposed limit. They want the threshold increased from ₹10,000 to ₹25,000, believing this would better balance security needs with the everyday use of digital payments. Banks worry the ₹10,000 limit could block too many legitimate transactions and cause extra hassle.
Soaring Digital Payment Fraud Sparks Concern
Digital payment fraud has surged dramatically. The value of fraudulent incidents has jumped about 41 times in five years, reaching nearly ₹23,000 crore. RBI data shows that payments over ₹10,000 make up roughly 45% of fraud cases by number, but a massive 98.5% by value. This highlights the urgent need for strong anti-fraud steps.
RBI: Discussion Paper, Not Final Policy
Banks have also pointed out operational issues, such as potential delays longer than one hour and difficulties with whitelisting accounts. The RBI has stated that the discussion paper is just an "idea floated for feedback," and a final decision will depend on what stakeholders say. Former RBI deputy governor T Rabi Sankar added that the aim is to cut down fraud, not to establish a new policy at this stage.
Finding the Right Balance for Digital Payments
Senior bankers believe that while instant payments are best, a controlled delay might be needed to manage risks. The discussion is now focused on setting the right limit, possibly not ₹10,000, with the understanding that real-world use after implementation will show the best level. The main goal is to reduce risk without slowing down India's fast-growing digital payment system.