Financial frauds are rising every day in India. In order to put an end to such a practice, the Reserve Bank of India (RBI) will soon bring forward new measures. According to a recent report, the central bank has come up with a four-step checklist to combat cyber fraud. One of the steps in this includes holding the transactions worth more than Rs 10,000 for one hour. This measure would give enough time to a user to reconsider the transaction in case they feel that it might be some kind of cybercrime. Moreover, RBI has also invited public feedback on these proposals and may issue formal rules after reviewing responses.
The RBI has noted that most of the recent fraud cases come under authorised push payment frauds, wherein people are conned into making payment themselves. Frauds usually involve some form of coercion and urgency to ensure that the victim does not have sufficient time to consider their actions. This move aims to disrupt this trend and provide more scope for reflection.
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The major suggestion has been a one-hour halt for all transfers between two accounts worth more than Rs. 10,000 using the faster payment system. In this period, consumers can reverse their transactions if they feel any kind of threat of fraud. The banks can also raise an alert about a transaction and take necessary action. Payments to merchants and transactions from a merchant list should, however, not be affected by the rule.
Further protecting high-risk segments, RBI has recommended the introduction of a second layer of approval for transactions above Rs. 50,000. Senior citizens aged 70 and above, along with persons with disabilities, may need authorisation from a trusted contact before completing such payments. Users could be allowed to opt out of this system.
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The paper also recommends limits on annual credits to certain bank accounts, especially those suspected of being used as mule accounts. Transfers beyond Rs 25 lakh could face additional checks before funds are released. Also being considered is a kill switch that gives users the option to immediately disable digital payments if there is suspicion of any fraud.