RBI proposes cooling period, kill switch: What new anti-fraud measures mean for your digital payments

The Reserve Bank of India has issued a discussion paper proposing major changes to strengthen consumer protection and curb digital fraud.

The central bank has invited public comments on the paper until May 8, 2026.

As per the proposals, a one-hour “cooling period” may be introduced for digital transactions above Rs 10,000. During this period, customers will have the option to cancel the transaction to prevent fraud.

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The RBI has also proposed additional safeguards for senior citizens above 70 years and persons with disabilities. Transactions above Rs 50,000 may require approval from a nominated “trusted person.”

The discussion paper further suggests capping credit for customers with unclear profiles. A limit of up to Rs 25 lakh per year may be set, while amounts beyond this could be classified as “shadow credit.”

A “kill switch” feature has also been proposed, allowing users to disable all digital payment services with a single click.

Digital fraud has risen sharply in recent years, with reported amounts increasing from Rs 551 crore in 2021 to Rs 22,931 crore in 2025.

The RBI said the proposed measures aim to make digital transactions safer and enhance consumer protection.