Recently, online transactions made via Unified Payments Interface (UPI) has been the new target of fraudsters. To overcome this issue, the Indian government is anticipated to employ a four-hour delay window for transactions above Rs 2,000. This means that if a users is transferring an amount of more than rupees two thousand to another user for the first time, the recipient will receive the amount within a gap of 4 hours instead of instant transaction, which is happening currently.
The four hour time limit for UPI payments will definitely be a hindrance to digital payments, however, as per media reports, the government has said it is mandatory to tackle cybersecurity issues. Once introduced, the online payment delay window will be specifically applicable to transactions made through UPIs, Real Time Gross Settlement (RTGS), and Immediate Payment Service, as per a report by Indian Express.
Currently, a user is allowed to send up to Rs 5000 within 24 hours, after creating a new UPI account. After account activation, the NEFT users can transact a maximum amount of Rs 50,000 within a time frame of 24 hours, and this can be either done at once or in installments.
The four hour UPI transaction delay has been suggested by concerned officials to curb the scams and frauds. According to RBI's annual report 2022-23, the total number of payment frauds stood at 13,530, involving a total amount of ₹30,252 crore. Of this, almost 49% or 6,659 cases were in the digital payment – card/internet – category.
UPI 4 Hour Delay: How Will It Work
As per a report by The Indian Express, "Basically, how it will work is that you will have four hours after making a payment to someone for the first time to reverse or modify the payment. It will be along the lines of NEFT (National Electronic Funds Transfer) where the transaction happens within a few hours. Initially, we did not want to have any amount limit thresholds, but through informal discussions with the industry, we realised it could impact small-scale buying like groceries etc. so we are planning to give a leeway to transactions under Rs 2,000,” the official added. Queries sent to the National Payments Corporation of India (NPCI), which manages the UPI platform, remained unanswered until publication."
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