To combat the rising tide of digital payment fraud, the Indian government is considering implementing a mandatory four-hour delay for the first UPI transaction exceeding Rs. 2,000 between unfamiliar users. This measure, which could potentially extend to other digital payment methods like IMPS, RTGS, and NEFT, aims to provide users with ample time to verify the legitimacy of the transaction before funds are irrevocably transferred.
Currently, when a new UPI account is created, users are restricted to a maximum transfer of Rs. 5,000 within the first 24 hours. Similarly, for NEFT, after adding a beneficiary, transfers up to Rs. 50,000 are allowed within the initial 24 hours. This proposed four-hour delay goes a step further, applying to all initial transactions between users, regardless of their prior transaction history.
The proposed measure is part of a broader discussion scheduled for November 28, where government and industry stakeholders, including the Reserve Bank of India, banks, and tech companies, will gather to address digital payment fraud, financial crimes, and cybersecurity measures. By implementing this delay, the government aims to enhance the safety and security of digital payments, ensuring that Indian users can conduct transactions with confidence.