Improving Digital Payment Safety: Alert Systems For Transactions Over Rs 5,000

Financial institutions are considering the implementation of a swift alert system for digital payment transactions exceeding Rs 5,000, as per Ministry of Finance sources.

This system is expected to apply specifically to transactions involving new users or vendors. For example, if an individual in Jaipur wants to make a purchase worth Rs 5,000 using a real-time payment system like UPI, a verification message or call may be initiated before the amount is debited, seeking confirmation for the transaction.

The proposed system mirrors existing practices in many institutions that already employ this procedure for specific high-value debit and credit transactions, according to an official.

It's important to note that this potential implementation contrasts with a previous idea suggesting a minimum four-hour delay for a transaction occurring for the first time between two UPI users.

This proposal was a focal point of discussion during a recent meeting organized by the Ministry of Finance. 

The meeting included officials from various departments such as the Department of Economic Affairs, Revenue, and Financial Services, along with representatives from the Ministry of Electronics and Information Technology, Telecom, and NPCI (National Payments Corporation of India). The aim was to formulate a strategy to mitigate cyber financial fraud in the country.

As an alternative approach, the government is exploring options like activating a suspicious caller list through International Mobile Equipment Identity and alerting users to spam calls to enhance consumer caution. 

Ongoing discussions with the Telecom Authority of India are addressing the feasibility of these potential measures. Sources have indicated that the idea of introducing a four-hour delay in transactions has not gained much support. 

Such a delay was perceived as causing significant inconvenience and being counterproductive to the growth of digital payments in India.

Also Read: 5 Considerations Before Opting For The New Discard Option By The Income Tax Department

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