Payment News

Payment Time Lag Discussed for India

Reuters reports the Reserve Bank of India (RBI) is considering new controls for high-value transactions due to a rise in digital frauds. The RBI is proposing a one-hour delay for account-to-account transfers above Rs 10,000 ($107.92) processed through fast payment systems, including the Unified Payments Interface (UPI). The time lag is to give customers time to cancel a transaction.

Low-value transactions would continue to be processed instantly to avoid disruption to routine payments.

The proposed delay would not apply to merchant payments, which have their own dispute-resolution processes.

The paper proposes an outline model in which a customer’s account would be provisionally debited during the delay period. The system could generate alerts if a transaction appears suspicious.