If there is an online fraud, there is no tension! RBI introduces ‘Kill Switch’ service; Find out how you can benefit?
- ‘Kill Switch’ feature available on UPI platform
- Stricter rules for online payments
- They can cancel the transaction
RBI Plans Kill Switch : In the era of digital payments, the number of UPI transactions is increasing exponentially, but with it the number of online frauds has also increased. The Reserve Bank of India (RBI) is now taking stricter steps to prevent this. Soon the Reserve Bank of India is all set to implement a change that could completely transform the way online payments are made. The ‘Kill Switch’ feature will be made available on the UPI platform, which will enable customers to keep their accounts more secure.
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What’s in the advisory?
According to an advisory issued by the central bank, it is advised not to withdraw money immediately after large transactions. It said that a delay of one hour should be applied on account-to-account transfers above ₹10,000. The rule is primarily intended to apply to faster payment networks such as the Unified Payments Interface (UPI). The RBI has invited feedback from the public on the advisory till May 8. After review, these suggestions will be formalized in the form of guidelines.
Stricter rules for online payments
These rules will not apply to small amount transactions or merchant payments. Whereas payments for purchases or daily needs will remain as fast as before, as the dispute resolution system is already in place. Due to increasing digital fraud in the country, the Reserve Bank of India has decided to tighten the rules for online payments. According to the National Cyber Crime Reporting Portal, between 2021 and 2025, digital payment fraud incidents have increased tenfold to 28 lakh.
They can cancel the transaction
Currently, as soon as you send money to someone, it is immediately deducted from your account and transferred to the other person’s account. However, as per the new proposal, payments above ₹10,000 will not be immediately ‘finally settled’. During this one-hour delay, only a temporary amount will be deducted from the customer’s account. The biggest advantage of this is that if a customer feels they have been cheated or accidentally sent money to the wrong person, they can cancel the transaction.
Special sanction of ₹50,000
Cybercriminals often target senior citizens. In response to this, the RBI has proposed a drastic measure. Under the scheme, the permission of a ‘trustee’ can be made mandatory for transactions above Rs 50,000 by citizens aged 70 years or above and persons with disabilities.
This means that when a senior transfers a large amount, the system will send an alert to a trusted member or relative nominated by them. Payment will be completed only after approval by the person. The central bank said customers will also be given an opt-out option. If senior citizens want to do banking transactions independently, they can opt out of this security cover.
Also consider giving a ‘kill switch’
RBI is not just stopping at delays and sanctions, but is also considering a ‘kill switch’ feature. This will allow users to instantly turn off all their digital payment methods with a single click. If someone’s phone is stolen or they suspect their account has been hacked, this feature will come in handy.
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