In an effort to counter the rise of online payment frauds, the government is considering the implementation of a minimum time limit for initial transactions between two users in digital payments.
However, the decision-making process has not advanced to a conclusive point, as further discussion and careful consideration are deemed necessary, according to sources.
The government is exploring multiple proposals to address financial fraud stemming from cyber attacks or deceptive calls, with one proposal suggesting the introduction of a four-hour window for digital payment transactions.
Sources indicate that involving the telecom regulator to suspend suspicious mobile numbers is among the potential solutions being considered.
Following a meeting with bank officials today, Financial Services Secretary Vivek Joshi shared that 70 lakh mobile numbers have already been suspended by the government due to their association with suspicious transactions.
Additionally, the government plans to collaborate closely with banks to enhance customer information security, with a series of ongoing meetings slated to monitor the situation.
The crucial meeting on Tuesday witnessed the participation of senior officials from the Department of Economic Affairs, Department of Revenue, Department of Telecom, Ministry of Electronics and Information Technology (MeitY), Telecom Regulatory Authority of India, and National Payments Corporation of India.
This meeting gains significance in light of recent digital fraud incidents. Earlier this month, UCO Bank, a Kolkata-based public sector lender, reported an accidental crediting of Rs 820 crore to the accounts of its customers via Immediate Payment Service (IMPS).
As per the RBI Annual Report 2022-2023, the banking system witnessed a total of Rs 15,530 crore in fraud cases during FY23, with nearly 49 per cent attributed to digital payment frauds.