Bankers Support RBI's Proposed One-Hour Delay for Digital Payments to Combat Fraud
Bankers see merit in RBI's one-hour e-payment lag despite cost concerns
Business Standard
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Bankers are backing the Reserve Bank of India's (RBI) proposal for a one-hour delay on digital payments exceeding ₹10,000 (approximately $120 USD) to reduce fraud. However, they express concerns about the infrastructure costs and recommend increasing the transaction threshold to ₹25,000 (approximately $300 USD).
- 01The RBI proposes a one-hour delay for digital payments over ₹10,000 to combat fraud.
- 02Bankers support the initiative but raise concerns about the associated infrastructure costs.
- 03They suggest increasing the payment threshold from ₹10,000 to ₹25,000.
- 04The proposal aims to address the nearly one billion daily transactions that could be affected.
- 05Implementing this change will require banks to enhance their IT infrastructure.
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The Reserve Bank of India (RBI) has proposed a one-hour lag on digital payments exceeding ₹10,000 (approximately $120 USD) to mitigate the increasing incidents of fraud. This proposal has garnered support from bankers, who acknowledge its potential benefits. However, they have raised concerns regarding the additional infrastructure costs that banks will incur to manage the IT systems necessary for this change. Currently, nearly a billion transactions occur daily in this payment bracket, which highlights the scale of the challenge. To alleviate some of the financial burden, bankers recommend increasing the transaction threshold to ₹25,000 (approximately $300 USD), which could reduce the number of transactions subject to the delay.
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The proposed delay could enhance security for digital transactions, potentially reducing fraud incidents. However, banks may pass on the infrastructure costs to consumers, impacting transaction fees.
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