Sunday, June 23, 2024

Banks can activate alert system for digital payment transactions of Rs 5,000 or more

According to Finance Ministry sources, financial institutions can implement the Rapid Alert System for digital payment transactions of more than Rs 5,000.

“This will be implemented only for transactions involving new users or sellers,” a government official said.

For example, if someone is in Jaipur and wants to make a purchase of Rs 5,000 using a real-time payment system like UPI, a verification message or call may be made asking for confirmation of the transaction before the amount is debited. Is. Source added.

Many institutions are already incorporating this practice for specific high-value debit and credit transactions, the official said.

If implemented, this proposal would be in contrast to the earlier floated idea to introduce a minimum delay of four hours for first-time transactions between two UPI users.

The idea was part of the agenda of a meeting recently organized by the Finance Ministry, which included officials from the departments of economic affairs, revenue, financial services and representatives of the Ministry of Electronics and Information Technology, Telecom Regulatory Authority of India and National Highways Authority of India. Payments Corporation of India will arrive at a strategy to reduce cyber financial fraud in the country.

The government is also exploring alternative options, such as activating a suspicious caller list through International Mobile Device Identification and alerting users to spam calls to increase consumer caution. These possible measures are under discussion with the Telecom Authority of India.

Sources said the idea of a four-hour delay was not accepted by many as it would have caused massive inconvenience and would have been counterproductive to India’s digital payments growth.

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