Nevertheless, experts have expressed concerns about this initiative, suggesting that it could potentially pave the way for fraudulent activities by buyers. Additionally, there is apprehension that the move might have an adverse impact on digital payments, as shopkeepers could become hesitant to accept digital payments for amounts exceeding Rs 2,000.
In an attempt to address accidental or mistaken money transfers via UPI, the Indian Government is reportedly considering the introduction of a 4-hour window for modifying/canceling transactions above Rs 2,000. This feature is intended to provide relief to users, especially for first-time transactions. The decision is prompted by the rising incidents of online fraud nationwide through UPI, resulting in significant financial losses for victims.
Media reports suggest that the proposed measure won’t be confined to UPI alone but will extend to cover other digital payment methods such as Immediate Payment Service (IMPS) and Real Time Gross Settlement (RTGS).
India has witnessed remarkable growth in digital transactions, with UPI emerging as a leading online payment method. However, this surge has brought about challenges related to cybercrime and cyberfraud, leading individuals to fall victim to various methods, resulting in financial losses.
The government is anticipated to implement these changes in collaboration with the Reserve Bank of India (RBI) and payment service providers. It’s crucial to note that while these measures aim to prevent online fraud, there is a concern about potential opportunities for buyers to defraud merchants.
As of August, UPI monthly transaction volumes surpassed a historic 10 billion and have consistently remained above this mark since that month.
