Government's Counter-Fraud Plan: 4-Hour Window to Reverse Online Payments above ₹2,000
The Indian government is reportedly considering new strategies to counter online payment fraud. According to The Indian Express, sources indicate a potential time restriction for the first-time transactions between two users in digital payments above ₹2,000. This measure aims to introduce a four-hour window for the first transaction between previously unconnected users, spanning various digital payment methods.
Presently, new UPI accounts have a 24-hour limit, allowing a maximum transfer of ₹5,000. In the case of NEFT, post activation of a beneficiary, ₹50,000 (in total or parts) can be transferred within 24 hours.
Proposed Four-Hour Window for Initial Transactions
Under the proposed plan, a four-hour time limit would apply to the initial payment exceeding ₹2,000 made to an entirely new recipient, permitting users to reverse or modify the transaction. Today, the Reserve Bank of India (RBI), along with public and private banks, and technology firms like Google, will convene to deliberate on this matter.
RBI's annual report for 2022-23 highlighted 13,530 payment frauds amounting to ₹30,252 crore. Nearly half, 6,659 cases, belonged to the digital payment – card/internet – category.
Government Initiatives to Combat Frauds
The government initiated the national helpline 155260 and a reporting platform to counter cyber fraud. This platform, orchestrated by the Indian Cyber Crime Coordination Centre (I4C), operates with cooperation from the RBI, major banks, payment banks, wallets, and online merchants.
Operationalised by the I4C, the national helpline 155260 and its reporting platform aim to prevent financial losses due to cyber fraud. This initiative aligns with the collaborative efforts of major stakeholders in the financial ecosystem.
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