RBI’s New UPI Rule 2026: You Have to Wait 1 Hour for Some Payments

The Unified Payment Interface (UPI) has revolutionised how payments are made in India, with more people choosing digital payments over cash transactions. However, for all its benefits and positives, this has also led to increased online fraud. 

To make online payments more secure, the Reserve Bank of India (RBI) has proposed a new UPI rule as of April 2026, which will include a 1-hour delay for high-value transactions. In this blog, we will explore everything about the RBI’s newly proposed UPI rule.

What is the RBI’s new UPI Proposal?
 

RBI has proposed a ‘Cooling Period’ for any transaction above ₹10,000 done through UPI or certain other digital modes. This period will delay any transaction by an hour, where users may have the option to cancel their payments in case of suspicious activity. The decision has been proposed to minimise fraud in online transactions.

Why is the RBI Proposing a 1-Hour Cooling Period?

The RBI’s new proposed UPI policy is designed to reduce the risk of online payment fraud. While instant online transactions are quite convenient and helpful, in case of a payment error or financial fraud, it can be difficult to retrieve the funds. Besides, many users every day fall victim to scams or make unintentional payments online.

With the ‘Cooling Period’, users will now have an extra timeframe where they can check all details of a transaction and reverse any transaction errors before its final execution.

Also Read: The Role of UPI in Modern Lending

Which UPI Transactions Will be Affected?

The RBI’s new proposed UPI rule will impact several types of transactions, particularly those that carry a higher risk of error or fraud. The key areas affected include:

• Transactions exceeding ₹10,000: Payments exceeding ₹10,000 will be subject to the new regulations and may experience the ‘Cooling Period.’
• First-time beneficiaries: Transfers to newly added recipients will require additional verification, ensuring greater caution before completing the transaction.
• Person-to-person payments: These transactions will also be regulated, particularly when money is sent to a recently added contact, to reduce the chances of errors or scams.

What is the Whitelist Feature?

Whitelisting is another new feature proposed by the RBI to bypass the transaction delays. The feature lets users pre-approve certain beneficiaries as trusted recipients for quicker transactions. 
After whitelisting a contact, any payment sent to them will not be delayed, and subsequent payments will be easier and faster too. Whitelisting can be quite useful and safe for routine payments and business-related transactions.

What Challenges Can the RBI’s New UPI Rule Have?

While this new proposed update is meant to prevent scams, it also creates certain challenges, such as: 

• Impact on banking infrastructure: The new 1-hour ‘Cooling Period’ could call for some significant changes in the infrastructure of banking and digital payment systems. These include reworking cancellation mechanisms and transaction queuing. 
• Associated costs for stakeholders: The RBI’s new proposed UPI update can also involve certain costs for all parties involved in a transaction.
• Need for Widespread Education: Adapting to this model of lagged crediting with an option to cancel the payment may require some education on how to use the systems safely and responsibly.
• Loss of Instant Convenience: A proposed delay on UPI payments of high-value amounts decreases the chances of fraud but compromises on the transaction speed of UPI, which makes it popular.

Also Read: Paying Loan EMI Online: A Guide to Seamless Repayment Transactions

To Conclude

The RBI’s new proposal for UPI payments can be a significant step toward safeguarding users against financial fraud. By introducing a delay for high-value transactions, it provides individuals with greater control and the opportunity to review or reverse suspicious payments. This measure can be particularly beneficial for s users new to online transactions.

Although it may bring some minor inconveniences in the short-run, the broader objective is to strengthen security and reduce digital payment fraud across the country.

FAQs

What are the new proposed rules of RBI for UPI?
As of April 2026, the RBI has proposed rules to decrease fraud. This includes mandatory two-factor authentication and a 1-hour delay for payments over ₹10,000. It also includes changes such as device binding, stricter auto-debit controls, and mandatory pre-debit notifications.

What is the UPI transaction limit per day?
The limit for UPI transactions per day is ₹1 Lakh, with a cap of 20 transactions. However, your bank has the authority to set a lower limit. A few other transactions, such as IPO applications, will allow you to have a higher limit. 

What is two-factor authentication (2FA) in UPI?
Two-factor authentication (2FA) is a security process that requires users to verify a transaction using two steps - a UPI pin along with device or account verification, ensuring safer digital payments.

What is a ‘Cooling Period’?
A ‘Cooling Period’ is a one-hour timeframe after completing a particular action. During this interval, the users can cancel or modify their online transactions.

What does a first-time beneficiary mean in UPI?
For UPI transactions, a first-time beneficiary is a recipient to whom you send money for the first time or is a newly added payee.

What is device binding in UPI?
Device binding is the process of associating your mobile device with your UPI account. This ensures that only the registered phone can access and perform transactions through your UPI or banking app for an extra layer of security.

How will the RBI’s new UPI rule affect my daily transactions on payment apps?
The RBI’s new UPI rule will only impact transactions exceeding ₹10,000, where the system will require two-factor authentication (2FA), and the one-hour cooling period will be applicable.