The government is considering a new strategy to combat online payment frauds by proposing a four-hour window for users to reverse or modify transactions above Rs.2,000, according to a report by The Indian Express. This initiative aims to set a maximum time limit for the first transaction between two users in digital payments, encompassing methods like Unified Payments Interface (UPI), Immediate Payment Service (IMPS), and Real Time Gross Settlement (RTGS).
Currently, new UPI account holders can send up to Rs.5,000 within 24 hours, and NEFT allows Rs.50,000 post activation of a beneficiary.
Under the potential plan, users initiating payments over Rs.2,000 to a new recipient will have a strict four-hour time frame to amend or revoke the transaction.
The Reserve Bank of India (RBI), along with public and private banks, and tech giants like Google, will discuss this proposed measure in a meeting scheduled for today (28 November).
According to the RBI's 2022-23 annual report, payment frauds in India totaled 13,530 cases amounting to Rs.30,252 crore, with nearly 49% occurring in the digital payment category encompassing cards and internet transactions.