UPI Transactions May See Four Hours Delay; Know Why

The Indian government is reportedly set to implement a new process that will affect online transactions using the Unified Payments Interface (UPI). In an effort to prevent fraud in online transactions, authorities are planning to introduce a minimum time limit for the very first transaction between two people.

If implemented, transactions above 2,000 may be delayed up to four hours. That means a user will have to wait for a time limit of four hours after initiating the first payment above Rs 2,000 per person for the first time.

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While the policy will add some complexity to digital payments, officials believe it is a necessary step to address cybersecurity concerns, the Indian Express report said.

The report stressed that the move could be used for various digital payment systems including Instant Payment Service (IMPS), Real Time Gross Settlement (RTGS) and Unified Payments Interface (UPI).

According to the report, the goal isn't just to slow down or limit the first transaction when you open an account, as some digital payment systems already have this method in place. The main idea is to closely monitor and manage every first transaction between two users, regardless of their past transaction history.

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Currently, when you create a new UPI account, a maximum of Rs. 5,000 can be sent. Similarly, for National Electronic Funds Transfer (NEFT), after you add a beneficiary, you can spend Rs. 50,000 (in full or in parts).