RBI Digital Payment: To curb fraud in digital transactions exceeding ₹10,000, the RBI has proposed introducing a one-hour time lag and providing an option to cancel the transaction, thereby giving users adequate time to reconsider.
RBI Digital Payment Rule: To put a stop to online fraud, the RBI (Reserve Bank of India) is taking several stringent measures. The RBI has proposed new security protocols for digital transactions exceeding ₹10,000 with the aim of making digital payments safer. This proposal is specifically designed to combat the rising instances of fraud associated with Authorized Push Payments (APP). Under this framework, several significant changes have been suggested that will bolster the security of ordinary users.
The most crucial change is that if a customer transfers an amount exceeding ₹10,000 to a new individual or account, a mandatory one-hour time lag may be imposed on the transaction. This means the funds will not be transferred instantly; instead, they will remain on hold for one hour. During this interval, the customer will have the full option to cancel the transaction; this ensures that if they harbor any doubts or realize they have made a mistake, they can prevent the funds from being transferred.
Higher Fraud Incidence in Transactions Over ₹10,000; Banks to Issue Alerts
According to the RBI, data from the National Cyber Crime Reporting Portal (NCRP) indicates that transactions exceeding ₹10,000 account for approximately 45 percent of all fraud cases. However, in terms of the total monetary value involved, these transactions constitute a staggering 98.5 percent of all fraudulent activity. For this reason, special attention has been directed toward this specific category. Furthermore, if a transaction appears suspicious, the bank may seek re-confirmation from the customer and will also issue an alert regarding potential fraud; these measures are expected to help reduce the incidence of fraudulent cases. Not Applicable to Merchant Payments; Whitelisting Offers Relief
However, this rule will not apply to merchant payments (such as purchases made via UPI), e-mandates, or payments made by cheque. For the convenience of customers, a ‘whitelisting’ option will also be provided, allowing them to avoid this delay by pre-approving trusted individuals or accounts. The RBI is taking this necessary step to protect customers from fraud.
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