Government's New Move: Potential 4-Hour Delay for UPI Transactions Above Rs 2,000

To enhance cybersecurity and counteract fraudulent activities related to online transactions, the Indian government is contemplating a substantial modification to the Unified Payments Interface (UPI). The change that is being suggested entails establishing a four-hour minimum window for the initial transaction between two people, particularly for transactions that are larger than Rs 2,000.

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The Anti-Fraud Initiative: Information for Users Extending the Range: Relevance to All Digital Payment Modes Present Boundaries and Upcoming Talks: The Government’s Position

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The Anti-Fraud Initiative: Information for Users

There are reports that government representatives are developing a new procedure that may affect UPI users. If put into effect, consumers making their first payment of more than Rs 2,000 to a person they have never transacted with before will be required to wait four hours. Although this complicates digital payments further, officials stress how important it is to take such steps to address growing cybersecurity concerns.

Curbing Fraud: Government Plans Possible 4-Hour Delay for First UPI Transfers Above Rs. 2,000

Extending the Range: Relevance to All Digital Payment Modes

The suggested time delay may apply to other digital payment systems as well, such as Real Time Gross Settlement (RTGS) and Immediate Payment Service (IMPS). It is not limited to UPI. Regardless of the users’ prior transaction history, the main emphasis is on attentively observing and supervising the first transaction between two users.

Present Boundaries and Upcoming Talks: The Government’s Position

The maximum amount that may be transferred into a new UPI account in its first 24 hours is now Rs 5,000. Comparably, the maximum amount that may be sent via National Electronic Funds Transfer (NEFT) in the first 24 hours after adding a beneficiary is Rs 50,000. A conference with the Reserve Bank of India, public and private sector banks, and software companies like Google and Razorpay is scheduled for November 28. The government wants to debate the suggested time restriction for first-time digital transactions exceeding Rs 2,000 during that meeting.

Individuals may need to adjust to possible delays in beginning transactions over Rs 2,000 as the government works to reduce digital payment fraud and improve cybersecurity.