As per a government official, “If an individual wants to buy something for Rs 5,000 using a real-time payment system like UPI, they can verify the transaction by sending a verification message or making a call before the amount is deducted.”
According to sources in the Ministry of Finance, financial institutions may put in place a quick alert system for digital payment transactions worth more than Rs 5,000.
According to a government official, “this would be implemented solely for transactions involving new users or vendors.”
“For instance, if someone is in Jaipur and wishes to make a purchase worth Rs 5,000 using a real time payment system like UPI, a verification message or call may be done before the amount is debited, asking for confirmation of the transaction,” said the source.
The official said that many institutions already use this procedure for particular high-value debit and credit transactions.
If enacted, this proposal would contradict an earlier suggestion to impose a minimum four-hour wait for a first-time UPI user-to-UPI transaction delay.
In order to develop a plan to lessen cyber financial frauds in the nation, the Ministry of Finance recently hosted a meeting with representatives from the Department of Economic Affairs, Revenue, and Financial Services as well as the Ministry of Electronics and Information Technology, Telecom Regulatory Authority of India, and National Payments Corporation of India. This idea was included on the agenda for the meeting.
In order to increase consumer caution, the government is also looking into other options, such as using International Mobile Equipment Identity to activate a suspicious caller list and warning users when they receive spam calls. These possible actions are currently being discussed with the Telecom Authority of India.
According to sources, the proposal for a four-hour delay has not gained much traction because it would have caused severe disruption and hampered the expansion of digital payments in India.