Sent Money By Mistake Or Fell Prey To Fraudsters? Soon You Can Revert Transactions Over Rs 2,000 Within 4 Hours: Reports

New Delhi: In an effort to address the issue of accidental or mistaken money transfers through UPI, the Indian Government is reportedly planning to introduce a 4-hour window for modifying/canceling transactions above Rs 2,000. This option will be available for first-time transactions to provide relief to users. The move comes in response to the increasing incidents of online fraud across the country through UPI, causing significant losses to victims.

According to media reports, the proposed measure will not be limited to UPI but will also cover other digital payment methods such as Immediate Payment Service (IMPS) and Real Time Gross Settlement (RTGS).

India has experienced remarkable growth in digital transactions, with UPI leading online payment methods. However, this surge has also brought about challenges related to cybercrime and cyberfraud, with individuals falling victim to various methods leading to financial losses.

The government is expected to implement these changes in collaboration with the Reserve Bank of India (RBI) and payment service providers. It's important to note that while these measures aim to prevent online fraud, there is a concern that they may create opportunities for buyers to defraud merchants.

As of August, UPI monthly transaction volumes surpassed a historic 10 billion and have consistently remained above this mark since that month.

However, experts raised alarm over the move saying that this may lead to fraud from buyers and may affect digital payments negatively as shopkeepers may become wary of taking payments digitally for amounts exceeding Rs 2,000.