RBI's Bold Steps Against Digital Payment Fraud: New Proposals Unveiled

The Reserve Bank of India (RBI), on Thursday, unveiled bold new proposals aimed at curbing the increasing incidence of financial fraud, particularly in digital payments. Among the suggested measures are lagged credit mechanisms and a 'kill switch' to ensure enhanced control over digital transactions.

As part of its strategic approach to combatting fraud, the central bank has proposed a partial delay in authorizing high-value transactions over Rs 10,000, which account for a significant portion of fraud cases by value. The proposed lag would allow customers to reconsider or cancel transactions, enhancing security.

The RBI also advocates for additional authentication requirements for high-value transactions involving vulnerable groups such as senior citizens and persons with disabilities. Public feedback on these proposals is invited until May 8. These measures reflect RBI's proactive efforts to bolster the security of digital financial ecosystems amidst rising fraud incidents.