• A proposal to place a 1-hour hold on UPI/IMPS transactions above Rs 10,000, which would enable cancellation of transactions in case of fraud.
• Possibility of making ‘Trusted Person’ permission mandatory for large transactions for persons above 70 years of age.
• Thinking of giving option to turn off all digital payment services in one click through ‘kill switch’ feature.

If you send more than Rs 10,000 to anyone through UPI or IMPS, it may now take up to an hour for the amount to reach the recipient. The Reserve Bank of India (RBI) is considering taking a major step to curb the growing digital fraud in the country. Under the new scheme, a ‘cooling period’ of 1 hour can be applied on digital transactions above Rs 10,000. The RBI has invited suggestions on the proposal till May 8, after which the final guidelines will be issued. Meanwhile, currently when we do a UPI transaction, the money reaches the other person within seconds. Fraud gangs take advantage of this momentum.

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Why are these efforts being made?

The main reason behind this decision is the increasing rate of digital fraud. According to statistics, fraud cases worth Rs 2,551 crore were reported in 2021 and this figure is likely to exceed Rs 22,000 crore by 2025. 98% of the total fraud transactions are for amounts above Rs 10,000. This will also prevent fraud through online threats. (Photo Courtesy – Pinterest)

Chance of a church even on the kill switch

• Transactions above Rs 10,000 will be put on ‘hold’ for 1 hour, during which time the customer can cancel the transaction if he realizes that it is fraudulent.
• If a person above 70 years transfers more than Rs 50,000, the permission of his ‘trusted person’ is mandatory.
• In case of deposits of more than Rs. 25 lakh in personal or small business accounts, the bank will not credit unless it is verified.
• RBI is considering ‘kill switch facility’. With this single button, the customer can close all his digital payment channels (UPI, Internet Banking, Cards) at once.

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Many may be inconvenienced

According to experts, this decision also has some disadvantages. For urgent transactions (e.g. medical emergency or urgent purchases) payments above Rs 10,000 will require a 1-hour wait, which may cause some inconvenience. Also, if you want to book a ticket for a trip suddenly and the amount is above Rs.10,000, waiting for 1 hour can be fatal. In such cases, if the money does not reach on time, serious problems may arise.