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government officials believe it is necessary to address cybersecurity concerns
The report further stressed that this measure could apply to various digital payment methods, including Immediate Payment Service (IMPS), Real Time Gross Settlement (RTGS), and the Unified Payments Interface (UPI).
The Indian government is reportedly working a new process that may affect users of the Unified Payments Interface (UPI). They are planning to introduce a minimum time frame for the first transaction between two individuals in an effort to combat fraud in online transactions.
If implemented, users could experience a four-hour delay for transactions exceeding Rs 2,000. This means that a four-hour time limit would apply whenever a user initiates the first payment over Rs 2,000 to another user with whom they have never transacted before.
Although this approach may add some complexity to digital payments, government officials believe it is necessary to address cybersecurity concerns, the Indian Express report said.
The report further stressed that this measure could apply to various digital payment methods, including Immediate Payment Service (IMPS), Real Time Gross Settlement (RTGS), and the Unified Payments Interface (UPI).
According to the report, the objective isn’t only to slow down or restrict the first transaction when you open an account, as some digital payment systems already have some form of this practice. The main idea is to keep a close eye on and manage every first transaction between two users, regardless of their past transaction history.
At present, when you create a new UPI account, you can send a maximum of Rs 5,000 within the first 24 hours. Similarly, for National Electronic Funds Transfer (NEFT), after you add a beneficiary, you can transfer up to Rs 50,000 (either in full or parts) within the initial 24 hours
A senior government official, speaking on condition of anonymity, told Indian Experess, “We are looking to add a time limit of four hours for first-time digital transactions over Rs 2,000. The discussion will be taken up during a meeting on Tuesday with government and industry stakeholders, including the Reserve Bank of India, various public and private sector banks, and tech companies like Google and Razorpay.”
The meeting on November 28 will discuss digital payment frauds, financial crimes, and cybersecurity measures needed to counter these activities.
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