UPI Transfer Fraud : Govt plans 4 hour delay in first UPI payment over Rs 2000

UPI services now available in Sri Lanka and Mauritius

UPI services now available in Sri Lanka and Mauritius

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By: Pune Pulse

November 28, 2023

Pune: The government is said to be considering the implementation of a time limit for initial digital payments between two users as a measure to prevent online payment fraud.

As per the annual report of RBI for the fiscal year 2022-23, the total count of online payment frauds in India reached 13,530, with a cumulative value of ₹30,252 crore. Among these, approximately 49% or 6,659 instances were related to digital payments, specifically involving cards and internet transactions.

As per the information provided, the government is considering the inclusion of four hours for the initial transaction between two users for online transactions exceeding ₹ 2,000. The proposed regulation will apply not only to the Unified Payments Interface (UPI) but also to other digital payment methods like Immediate Payment Service (IMPS) and Real Time Gross Settlement (RTGS).

Currently, for a user who establishes a fresh UPI account, the maximum amount that can be sent within the initial 24 hours is ₹5,000. Conversely, in the scenario of the National Electronic Funds Transfer (NEFT), once a beneficiary is activated, a sum of ₹50,000 (either in its entirety or in multiple transactions) can be transferred within a span of 24 hours.

Nevertheless, the implementation of the new scheme entails a 4-hour time limit whenever a user initiates a payment exceeding ₹2,000 to an unfamiliar recipient. During this timeframe, users will be granted the opportunity to retract or alter any payments made to a recipient with whom they have no prior transaction history.

The national helpline 155260 and its reporting platform have been made operational by the Indian Cyber Crime Coordination Centre (I4C), with active support and cooperation from the RBI, all major banks, payment banks, wallets, and online merchants.