UPI Payments: Big news for UPI users. The digital payments system in India has grown 38 times in the last decade. From street vendors to corporates, everyone relies on UPI or net banking. But with this convenience, cybercriminals have also changed their route. According to official statistics, the number of frauds, which was just 2.6 lakh in 2021, reached 28 lakh by 2025.
The total amount of money lost due to these frauds is 22,931 crore. In these circumstances, RBI has decided that technical security alone is not enough and that changes should be made to the design of transactions to protect consumers.
What is the cooling off period?
According to the RBI proposal, when one person sends an amount of Rs 10,000 or more to another, the money will not immediately go to the other person’s account. There will be a hold on the money for one hour after the transaction is initiated. The money will appear to have been deducted from the sender’s account. But it will not reach the other person.
During this hour, if the user realizes that he has sent money by mistake or has been deceived by someone, he will have the option to cancel the transaction. The RBI intends to apply this rule to all instant payment systems like UPI and IMPS.
Why was this decision made?
Cybercriminals are currently using a technique called social engineering. This means that they intimidate victims into sending money immediately. Speed has become the main weapon for criminals here. An hour is useful for the consumer to recover from the artificial emergency created by the accused and think. Transactions above ten thousand rupees account for 98.5 percent of the total fraud.
That is why this limit has been taken as a standard. Kill switch, trusted personNot only the time gap, but the RBI also made some other key proposals. Kill Switch: – A kill switch facility will be provided to immediately stop all types of digital payments if any suspicious activity is detected in your account.
Special protection for the elderly and disabled
For senior citizens or people with limited technology who make transactions exceeding fifty thousand, there is a possibility of requiring the approval of a trusted person. This means that the transaction can only be completed if the person’s family member or trusted person approves.
When will it come into effect? These are currently in the proposal stage. The RBI has sought views from stakeholders, banks and the general public on this issue till May 8, after which it will issue final guidelines.