Banks may activate alert system for digital payment transactions worth Rs 5,000 or more
'If someone 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,' says a govt official
- Nov 30, 2023,
- Updated Nov 30, 2023 3:23 PM IST
Financial institutions may implement a rapid alert system for digital payment transactions exceeding Rs 5,000, according to sources in the Ministry of Finance.
"This would be implemented solely for transactions involving new users or vendors," stated a government official.
"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," the source added.
Many institutions already incorporate this practice for specific high-value debit and credit transactions, the official added.
If implemented, this proposal would be in contrast to an idea floated earlier to introduce a minimum four-hour delay for a transaction for a first time between two UPI users.
This idea was part of the agenda for a recent meeting hosted by the Ministry of Finance including officials from the Department of Economic Affairs, Revenue, Financial Services, and representatives from the Ministry of Electronics and Information Technology, Telecom Regulatory Authority of India, and National Payments Corporation of India to arrive at a strategy to reduce cyber financial frauds in the country.
The government is also exploring alternative options, such as activating a suspicious caller list through International Mobile Equipment Identity and alerting users to spam calls to enhance consumer caution. Discussions are underway with the Telecom Authority of India on these potential measures.
Sources added that the four-hour delay idea has not found many takers as it would have led to massive inconvenience and be counter-productive for India’s digital payment growth.
Also Read: No decision taken as yet on establishing minimum time limit for UPI transactions, say sources
Financial institutions may implement a rapid alert system for digital payment transactions exceeding Rs 5,000, according to sources in the Ministry of Finance.
"This would be implemented solely for transactions involving new users or vendors," stated a government official.
"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," the source added.
Many institutions already incorporate this practice for specific high-value debit and credit transactions, the official added.
If implemented, this proposal would be in contrast to an idea floated earlier to introduce a minimum four-hour delay for a transaction for a first time between two UPI users.
This idea was part of the agenda for a recent meeting hosted by the Ministry of Finance including officials from the Department of Economic Affairs, Revenue, Financial Services, and representatives from the Ministry of Electronics and Information Technology, Telecom Regulatory Authority of India, and National Payments Corporation of India to arrive at a strategy to reduce cyber financial frauds in the country.
The government is also exploring alternative options, such as activating a suspicious caller list through International Mobile Equipment Identity and alerting users to spam calls to enhance consumer caution. Discussions are underway with the Telecom Authority of India on these potential measures.
Sources added that the four-hour delay idea has not found many takers as it would have led to massive inconvenience and be counter-productive for India’s digital payment growth.
Also Read: No decision taken as yet on establishing minimum time limit for UPI transactions, say sources