For online transactions, the government may implement a 4-hour window for the initial transaction
The government is reportedly considering imposing a maximum time for first-time digital payment transactions between two users in an effort to reduce online payment fraud.
What is this new move ?
The government may implement a four-hour window for the initial transaction between two users for online transactions exceeding Rs.2,000, according to a report by The Indian Express that cited sources.
Is this new rule only applicable to UPI payments?
According to the report, the proposed measure would encompass not only the Unified Payments Interface (UPI) but also other digital payment methods like Real Time Gross Settlement (RTGS) and Immediate Payment Service (IMPS).
How current system works?
Currently, a user can send up to Rs. 5,000 in the first 24 hours after opening a new UPI account. With the National Electronic Funds Transfer (NEFT), Rs. 50,000 (wholly or partially) can be transferred within a day after a beneficiary is activated.
What is the new rule or updated system?
But under the new plan, each time a user pays more than Rs. 2,000 to a user they have never transacted with before, a 4-hour time limit would be imposed. Payments made to a first-time user may be reversed or modified by the user within 4 hours.
In a meeting scheduled for today (November 28), the Reserve Bank of India (RBI), as well as public and private banks and tech companies such as Google, will talk about this issue.
Majority of payment fraud cases are of digital payments
The RBI's annual report for 2022–2023 states that there were 13,530 payment frauds in total, involving Rs.30,252 crore. Of these, 6,659 cases, or nearly 49%, fell into the category of digital payments using cards or the Internet.
National helpline number 155260 to help citizens
The national helpline, 155260, and reporting platform were made operational by the Indian government this year in an effort to stop financial loss from cyber fraud.
The RBI, all major banks, payment banks, wallets, and online retailers have all actively supported and cooperated with the Indian Cyber Crime Coordination Centre (I4C) in launching the helpline 155260 and its reporting platform.
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