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Banks moot 'Yes-No' prompt for UPI transfers

economictimes.indiatimes.com · 9d · first reportShare

Mumbai: India's high-street banks want to strike a balance between adding friction in online payments to curb frauds and preserving the widely showcased digital payment story.A number of them are proposing a software tweak for the payment app to throw up a prompt, seeking a go-ahead from the payer before the beneficiary's account is credited in peer-to-peer (P2P) transactions. If a customer says 'Yes', the payment is executed within seconds; if she says 'No', the transaction is cancelled; and, if she says nothing, the money-transfer goes through and the beneficiary's account gets credited after an hour.This is among the suggestions to the Reserve Bank of India (RBI) which had sought banks' response to a RBI discussion paper that laid down ideas - like lagged credit (instead of instant credit) - to counter a surge in frauds perpetrated through bogus calls, coercion, and deep-fake impersonation.Many banks are offering this as an alternative to the hour-long uniform delayed credit (of the