INDIA's central bank has sought recommendations to address a rise in online fraud, with scammers taking billions of dollars each year from users of its digital payments network.
The country’s digital payment system has been recognised globally for its low-cost services and financial access. However, cases of online fraud have also increased, with users losing nearly $3 billion in 2025, a nearly 40-fold rise since 2021.
“The potential of digital payments is impeded by complaints related to frauds,” the Reserve Bank of India said in a note published earlier this month seeking suggestions for stronger safeguards.
Users can submit recommendations to the bank until May 9.
Most fraud cases are due to “manipulation of users through social engineering, coercion, or impersonation” rather than a “technical compromise of systems”, according to the central bank.
Cases of fraudsters posing as law enforcement officials and pressuring people to transfer money have been reported across the country.
“Almost all sections of society, especially vulnerable groups such as senior citizens, have fallen prey to” online fraud, the note said.
“Therefore, there is an urgent need to put in place systems and processes to address these issues.”
Among the steps under consideration is “a short delay” before processing payments above a set amount.
“It can act as a preventive control by disrupting the fraudster's psychological influence over the victim and by giving the payer an opportunity to reconsider the transaction,” the bank said.
The central bank is also considering an additional layer of authentication involving a “trusted person for high-value digital transactions”.
Over the past decade, digital transaction volumes in India have risen 38-fold, while transaction values have more than tripled, according to central bank data.
(With inputs from agencies)
