With digital payments expanding rapidly — transaction volumes rising 38-fold over the past decade — fraud incidents have surged in parallel
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FEODORA CHIOSEA

To curb a surge in fraud driven by customer manipulation, the Reserve Bank of India has proposed a one-hour delay for account-to-account transfers above ₹10,000, along with additional authentication layers to tackle authorised push payment (APP) frauds, where users are tricked into initiating transactions themselves.

During this one-hour window, customers can cancel transactions, giving banks time to flag suspicious activity, said the discussion paper by the RBI. The measure aims to disrupt fraudsters’ ability to create urgency and quickly siphon funds.

The paper also suggests requiring an additional “trusted person” authentication for high-value transactions above ₹50,000 for vulnerable groups such as senior citizens and persons with disabilities. This is intended to add a verification layer for users more susceptible to fraud.

Another proposal involves capping annual credits at ₹25 lakh for certain bank accounts unless additional due diligence is completed, in a bid to curb mule accounts used to route illicit funds. Transactions exceeding the threshold would be subject to scrutiny before funds are released.

Further, the RBI has proposed extending customer-controlled safeguards — such as transaction limits and on/off switches — to all digital payment channels, along with a “kill switch” that allows users to instantly disable all digital transactions in case of suspected fraud.

With digital payments expanding rapidly — transaction volumes rising 38-fold over the past decade — fraud incidents have surged in parallel, highlighting vulnerabilities in an otherwise robust system.

Data from the National Cyber Crime Reporting Portal shows reported digital payment frauds jumping from 2.6 lakh cases involving ₹551 crore in 2021 to 28 lakh cases worth ₹22,931 crore in 2025. The RBI noted that most frauds now stem from social engineering tactics such as impersonation, coercion and deepfake-enabled scams, rather than system breaches.

While these measures could strengthen consumer protection, the central bank acknowledged potential trade-offs, including increased friction in payments and higher compliance costs for banks. Stakeholder comments have been invited until May 8, after which draft guidelines are expected.

Published on April 9, 2026

The CBI has registered an FIR in the alleged embezzlement of ₹550 crore from the Haryana government’s accounts maintained with IDFC First Bank in Chandigarh after taking over the investigation in the matter, official sources said Thursday.

The Haryana government had transferred the probe to the central probe agency. The referral was sent to the agency on Wednesday by the Department of Personnel and Training, they said.

The CBI registered the FIR taking over the case earlier probed by the Haryana State Vigilance and Anti-Corruption Bureau (SV & ACB).

“The case pertains to fraudulent banking operations and fictitious transactions allegedly undertaken in a systematic manner to siphon off Government funds into the accounts of shell entities, including Swastik Desh Project, SRR Planning Gurus Pvt. Ltd., Cap Co Fintech Services, R.S. Traders, and other associated firms/individuals, resulting in a substantial loss to the public exchequer,” the vigilance department of Haryana said while referring the case to the agency.

According to the police and ED allegations, Haryana government funds were supposed to be deposited by various departments of the state in the bank in FDs but were allegedly diverted by the accused for their personal purpose, the sources said.

Preliminary probe shows “huge” funds have been transferred to various shell (dummy) companies and minor jewellery entities and finally siphoned off under the guise of gold purchase and investment into real estate sector, the sources said.

They said a “significant” amount of cash withdrawals has also been noticed in this money trail.

Considering the magnitude, complexity, and gravity of the case, including its inter- state ramifications, the possibility of transnational diversion of proceeds of crime, involvement of multiple entities, including public servants and banking officials, and the significant impact on public finances and institutional integrity, the State Government is of the considered view that the investigation requires to be entrusted to a specialized central agency to ensure a comprehensive, impartial, and credible probe, the letter from the vigilance department said.

The SV & ACB has arrested a number of people in the case, of which two are ex-IDFC First Bank employees and the rest are private persons who own a partnership firm.

Role of a Chandigarh-based hotelier, involved in construction of real estate projects in the Tricity (Chandigarh-Mohali-Panchkula), and AU Small Finance Bank is also under the scanner.

IDFC First Bank had said it has paid out 100 per cent of the principal and interest to the relevant departments of the Haryana government, which works out to ₹583 crore.

“The bank remains committed to working together with the relevant Haryana Government departments and the law enforcement agencies to pursue actions against the perpetrators of the fraud and looks forward to recovering our dues,” IDFC First Bank said in a regulatory filing.

Published on April 9, 2026