Driving Naari Programme launched in Chandigarh
The government is considering introducing a minimum time limit for a transaction beyond a particular amount happening for the first time between two persons to curb rising instances of digital payment frauds .
As per a report of The Indian Express, government officials said that the plan likely includes a possible four-hour window for the first transaction between two users for digital payments being processed for all transactions likely above Rs 2,000.
During this window, the user would have the option to:
- Reverse the transaction: This would essentially cancel the payment and return the funds to your account.
- Modify the transaction: You could change the amount or recipient details (subject to the recipient’s bank/app allowing modifications).
4-hour window proposal to reverse, modify UPI transfers for first time above Rs 2000 – What’s the confusion?
At a time when the government is considering the plans to introduce 4-hour window proposal to reverse, modify UPI and other digital transfers for the first time above Rs 2000, many shopkeepers, inducing wholesale and retail traders are not accepting UPI payments over Rs 2000. As they fear that the users can reverse or modify the payment sent to them via UPI or other digital transactions.
What’s the current status?
The proposal is still under discussion and hasn’t been finalized. Various stakeholders, including industry experts, banks, and user groups, are providing feedback and concerns. The final decision might involve adjustments to the proposed window duration, transaction limits, or implementation details.
The government official told Indian Express that while the process is expected to add some complexities to digital payments, they are of the view that it is necessary to mitigate cyber security concerns.
Once finalised and approved, the measure could cover a wide range of digital payments through Immediate Payment Service (IMPS), Real Time Gross Settlement (RTGS), and even the Unified Payments Interface (UPI).
At present, when a user creates a new UPI account, s/he can send a maximum of Rs 5,000 within the first 24 hours of opening the account. Similarly, for National Electronic Funds Transfer (NEFT), after adding a beneficiary, the user can transfer up to Rs 50,000 (either in full or in parts) within the first 24 hours.
However, as per the plan on the table, a time limit of four hours will apply every time a user makes the first payment of over Rs 2,000 to another user they have never transacted with before, as per The Indian Express report
