In response to the escalating number of online payment frauds, the Indian government is reportedly contemplating the implementation of a time limit for the initial digital payments between two users. The move aims to enhance security measures and prevent fraudulent transactions, especially in the case of transactions exceeding Rs 2000.
According to the annual report of the Reserve Bank of India (RBI) for the fiscal year 2022-23, online payment frauds in India totaled 13,530, amounting to a cumulative value of ₹30,252 crore. Of these, approximately 49%, or 6,659 instances, were linked to digital payments, involving cards and internet transactions.
The proposed regulation suggests the inclusion of a four-hour time limit for the initial transaction between two users for online transactions surpassing ₹ 2,000. This measure is not limited to the Unified Payments Interface (UPI) but extends to other digital payment methods like Immediate Payment Service (IMPS) and Real Time Gross Settlement (RTGS).
Currently, a user initiating a new UPI account has a maximum limit of ₹5,000 for the first 24 hours. Conversely, under the National Electronic Funds Transfer (NEFT), once a beneficiary is activated, a sum of ₹50,000 (either in its entirety or through multiple transactions) can be transferred within a 24-hour period.
Under the proposed scheme, users initiating payments exceeding ₹2,000 to an unfamiliar recipient will encounter a 4-hour time limit. During this window, users will have the opportunity to retract or modify any payments made to recipients with whom they have no prior transaction history.
The Indian Cyber Crime Coordination Centre (I4C), in collaboration with the RBI, major banks, payment banks, wallets, and online merchants, has operationalized the national helpline 155260 and its reporting platform to facilitate reporting and response to cybercrimes.
