In a proactive move to address the surge in online payment frauds, the Indian government is contemplating the introduction of a four-hour window for initial transactions between two users in the digital realm, particularly those exceeding ₹2,000, according to insider sources.
This strategic measure aims to encompass a range of digital payment methods, including the widely used Unified Payments Interface (UPI), Immediate Payment Service (IMPS), and Real-Time Gross Settlement (RTGS). As part of current protocols, there are existing daily transaction limits for new UPI accounts. However, the proposed plan suggests implementing a four-hour timeframe for the initial transaction, surpassing ₹2,000, between two users who have not previously engaged in a digital transaction.
The comprehensive initiative is expected to cover an extensive discussion involving key stakeholders, including the Reserve Bank of India (RBI), prominent public and private banks, and leading technology companies. As online payment frauds in India witness a worrisome surge, the proposed solution comes in the wake of 13,530 reported cases, involving a staggering ₹30,252 crore, as highlighted in the RBI’s annual report for the fiscal year 2022-23.
This multifaceted approach reflects a concerted effort to fortify digital payment security and protect users from potential financial losses due to cyber fraud. The proposed measure will be a focal point of discussion in an imminent meeting involving top representatives from the RBI, major banks, and technology companies.
As the digital landscape continues to evolve, this proactive step underscores the government’s commitment to staying ahead of emerging challenges in the realm of online financial transactions.
