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Mahesh

29/11/23 13:31 PM IST

To curb fraud, 4-hour delay likely in first UPI transfer over Rs 2,000

In News
  • To curb rising instances of online payment frauds, the government is planning to introduce a minimum time for a transaction beyond a particular amount happening for the first time between two persons.
About the plan
  • 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.
  • 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.
  • For instance, currently, when a user creates a new UPI account, they can send a maximum of Rs 5,000 in the first 24 hours. Similarly, in the case of National Electronic Funds Transfer (NEFT), post activation of a beneficiary, Rs 50,000 (in full or parts) can be transferred in the first 24 hours.
  • A 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.
  • THE PLAN is not to just delay or limit the first transaction upon account creation — which already happens in some shape or form — but to regulate every first transaction between two users, irrespective of their independent past transaction history.
Frauds in Bank
  • Banks witnessed the maximum number of frauds in the digital payment category during the financial year 2022-23, according to the RBI Annual Report 2022-23.
  • In FY2023, the total number of fraud cases in the banking system were pegged at 13,530, involving a total amount of Rs 30,252 crore.
  • Of this, almost 49 per cent or 6,659 cases were in the digital payment – card/internet – category.
  • As per a recent Financial Action Task Force (FATF) report on ‘Illicit Financial Flows From Cyber-enabled Fraud’, Citizen Financial Cyber Fraud Reporting and Management System (CFCFRMS) — the online system developed by the Indian Cyber Crime Coordination Centre (I4C) for quick reporting of financial cyber frauds and monetary losses — has intercepted transactions worth Rs 602 crore since its inception in April 2021.
Source- Indian Express

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