Govt plans to introduce a 4-hour window to reverse, modify online payments above ₹2,000 to combat fraud: Report
The Indian Express, citing sources said, the government may include a possible four-hour window for the first transaction between two users for online transactions above ₹2,000. The proposed measure would cover not just include Unified Payments Interface (UPI) but also other digital payment methods such as Immediate Payment Service (IMPS) and Real Time Gross Settlement (RTGS), the report added. 5 tips to safeguard your UPI transactions At present, if a user creates a new UPI account, they can send a maximum of ₹5,000 in the first 24 hours.
In the case of the National Electronic Funds Transfer (NEFT), post activation of a beneficiary, ₹50,000 (in full or in parts) can be transferred in 24 hours. However, under the new plan, a 4-hour time limit would be applied every time a user makes the first payment of over ₹2,000 to another user they have never transacted with before. The user will have four hours to reverse or modify payments they made to a first-time user.
The Reserve Bank of India (RBI), public and private banks, and tech companies like Google will discuss this matter in a meeting that will be held today (28 November). According to RBI's annual report 2022-23, the total number of payment frauds stood at 13,530, involving a total amount of ₹30,252 crore. Of this, almost 49% or 6,659 cases were in the digital payment – card/internet – category.
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