RBI Tackles Online Fraud with New Controls
The Reserve Bank of India introduces new regulations aimed at tackling online fraud through delayed and monitored transactions. Key policies include one-hour delays for large transactions to prevent scams and special safeguards for elderly and vulnerable customers.
Highlights
- •One-Hour Delay: Transactions over ₹10,000 will be paused for one hour to monitor suspicious activity.
- •Protective Measures: Seniors and disabled individuals may need a trusted person's approval for larger transactions.
- •No Delay for Small Payments: Daily small payments won't be affected by new controls.
- •Kill Switch Feature: Immediate halt on all digital payments can be implemented if necessary.
The Reserve Bank of India (RBI) is implementing significant measures to curb online fraud, as detailed in a recent discussion paper. The new policies include one-hour delays on transactions exceeding ₹10,000, ensuring that large-dollar transactions are carefully monitored for suspicious activity.
Fraudulent activities such as call center scams and deepfakes have spiked significantly, leading to a tenfold increase in fraud cases from 2021 to 2025. The RBI's strategy aims at safeguarding both individual and merchant payments while maintaining the swiftness of small transactions.
Special Protections for Vulnerable Consumers
The proposed regulations extend special protections to senior citizens and other vulnerable groups. Individuals aged 70 or more, as well as those with disabilities, may require approval from a 'trusted person' for transactions exceeding ₹50,000. This measure ensures they can avoid potentially risky financial activities without compromising their everyday transactions.
Further, the RBI is proposing features such as a 'kill switch' that would allow immediate halting of all digital payments in critical situations to prevent fraudulent activity from spreading quickly.
These measures demonstrate the RBI's commitment to protecting consumers and enhancing cybersecurity measures against evolving fraud tactics. Feedback on these proposals is sought until May 8th, ensuring a comprehensive approach before final implementation.
