RBI Proposes New Digital Payment Safety Rules: Big Changes Likely for PhonePe and Google Pay Users

April 10, 2026:

In a major move to strengthen digital payment security, the Reserve Bank of India (RBI) has proposed a series of new measures aimed at curbing rising cases of online fraud. The proposed changes are expected to directly impact users of popular UPI platforms such as PhonePe and Google Pay.

With digital transactions becoming an integral part of daily life—from small purchases to large payments—the central bank’s proposals seek to enhance user protection and reduce financial risks associated with cybercrime.

Key Proposed Changes by RBI

1. 1-Hour Waiting Period for High-Value Transactions

One of the most significant proposals is a mandatory delay for transactions above ₹10,000. Such payments will take up to one hour to be credited to the recipient’s account.

Benefit:
This buffer period will allow users to cancel transactions in case they realise they have been scammed, potentially preventing major financial losses.

2. ‘Kill Switch’ for Instant Account Blocking

RBI has proposed introducing a ‘kill switch’ feature that allows users to immediately block all digital banking services if their phone is lost or an account is suspected to be compromised.

This can be activated through mobile banking, internet banking, or IVR systems, ensuring no further transactions can take place until verification is completed.

3. Additional Verification for Vulnerable Users

To protect senior citizens and differently-abled individuals—often targeted in fraud cases—RBI has suggested extra verification for transactions above ₹50,000.

This may include approval from a trusted family member or additional authentication steps to prevent scams, especially those executed via phone calls.

4. Restrictions on ‘Mule Accounts’

The central bank has also proposed stricter controls on suspicious or poorly documented bank accounts, commonly referred to as mule accounts.

Such accounts may face an annual transaction cap of ₹25 lakh unless the account holder provides valid income proof and necessary documentation.

Rising Cyber Fraud Concerns

The move comes amid a sharp rise in cyber fraud cases in India, driven by increased adoption of digital payments. Experts warn that fraudsters are increasingly exploiting unsuspecting users through phishing links, fake calls, and malicious apps.

Recent estimates suggest a steep surge in digital fraud cases over the past few years, along with a significant rise in financial losses, highlighting the urgent need for stronger safeguards.

Public Feedback Invited

RBI has invited suggestions and feedback from the public on these proposed measures until May 8, 2026, before finalising the guidelines.

Safer Digital Transactions Ahead

If implemented, these rules are expected to create a more secure digital ecosystem, ensuring that convenience does not come at the cost of safety for millions of users across India.

Disclaimer:
This article is for informational purposes only and is based on proposed guidelines by the Reserve Bank of India. The rules are subject to change after public consultation. Users are advised to follow official RBI notifications and consult their banks for accurate and updated information.