Speed-safety tightrope: Banks back RBI fraud curbs but seek digital payment flexibility

India’s banking industry is backing the Reserve Bank of India’s (RBI) efforts to strengthen safeguards against digital payment fraud, but lenders say the proposed measures must strike a balance between customer protection and the fast-growing real-time payments ecosystem.

Bankers believe the central bank’s proposals—including a mandatory cooling-off period for certain high-value digital transfers and additional authentication for senior citizens—could reduce instances of authorised push payment (APP) fraud, where customers are manipulated into voluntarily transferring money to fraudsters.