The Unified Payments Interface (UPI) has transformed financial transactions by bringing convenience and speed to it. But as with any technology, it brings its own set of challenges. One such challenge that demands attention is the issue of online fraud. In a latest development, the government is planning to introduce a gap of four hours for payments done above Rs. 2000, to curb rising instances of online payment frauds.
According to a report by the Indian Express, government officials have informed it 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.”
As per the information, the time limit of four hours will apply every time a user makes the first payment over Rs. 2,000 to another user they have never transacted with before. Also, if finalised, 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).
“The plan is not to just delay or limit the first transaction upon account creation – which already happens in some shape or form across most digital payment means – but to regulate every first transaction between two users, irrespective of their independent past transaction history,” the report added.
Notably, UPI is a real-time payment system developed by the National Payments Corporation of India (NPCI), enabling users to link multiple bank accounts to a single mobile application, facilitating seamless transactions between different banks. With its user-friendly interface and instantaneous fund transfer capabilities, UPI has become the go-to choice for millions of users for everything from paying bills to making online purchases.