Government plans four-hour window to secure online payments above ₹2,000

The government is gearing up to counter online payment fraud with a new strategy. According to a report from The Indian Express, the authorities are contemplating the introduction of a specific time frame for initial transactions between two users in the digital payment sphere. This initiative aims to tackle fraudulent activities in online transactions exceeding ₹2,000.

As per the report, the proposed strategy may encompass a four-hour window allocated for the maiden transaction between two users in cases of online transactions surpassing ₹2,000.

This measure is anticipated to encompass various digital payment methods, including Unified Payments Interface (UPI), Immediate Payment Service (IMPS), and Real Time Gross Settlement (RTGS).

At present, users initiating transactions encounter limits such as a maximum of ₹5,000 within the first 24 hours for UPI accounts, while NEFT allows transfers up to ₹50,000 post activation of a beneficiary within a day.

Under the potential new plan, a unique four-hour time constraint would apply each time a user conducts their first payment over ₹2,000 to an unfamiliar recipient. This window period grants users the opportunity to reverse or modify payments made to a first-time transaction counterpart.

The matter is set to be discussed in a meeting involving the Reserve Bank of India (RBI), public and private banks, and technology conglomerates like Google. The discussion aims to further refine and address the feasibility of implementing this safeguarding mechanism against online payment frauds.

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