In recent years, Unified Payments Interface (UPI) has become one of the most popular methods of digital transactions in India. With the increase in the number of UPI transactions, it has become necessary for Indian banks to provide more security features to protect users from frauds and cyber-attacks. One such feature that should be enabled by Indian banks is the option for users to set per transaction limit for UPI.
Overview:
Digital payments have seen exponential growth in India in recent years, with UPI transactions contributing significantly to this growth. According to a report by the National Payments Corporation of India (NPCI), UPI transactions reached an all-time high of 2.73 billion transactions in March 2021. However, with this growth, there has also been an increase in fraud and cyber-attacks related to digital transactions, leading to the need for more security features.
Current Scenario: Currently, users can set a daily transaction limit on their UPI transactions, but there is no option to set a per transaction limit. This means that if a user's UPI credentials are compromised, a fraudster can potentially make multiple transactions in quick succession, leading to significant losses. While some banks have implemented a per transaction limit, it is not yet a widespread practice.
Benefits of Per Transaction Limit:Enabling the option for users to set a per transaction limit for UPI transactions can significantly enhance the security of digital payments. Here are some benefits of having a per transaction limit -
- Protection from Frauds: With the per transaction limit feature, even if a fraudster gains access to a user's UPI credentials, they can only make transactions up to the set limit, reducing the losses.
- Customizable Limits: Users can set per transaction limits according to their usage and needs, providing flexibility and control over their transactions.
- Cost Savings: In case of a fraud or cyber-attack, users would lose only the amount set as the per transaction limit, reducing the financial losses.
Challenges in Implementing Per Transaction Limit
While enabling per transaction limit is an essential feature, there are a few challenges that Indian banks might face during implementation.
- User Education: Indian banks would need to educate their users about the per transaction limit feature and its importance in enhancing the security of digital transactions.
- Technological Integration: Banks would need to make necessary technological changes in their systems to enable the per transaction limit feature.
- Customer Convenience: Enabling the per transaction limit feature should not compromise customer convenience. Banks would need to ensure that the implementation of this feature does not affect the user experience negatively.
In conclusion, Indian banks should enable the option for users to set a per transaction limit for UPI transactions to enhance the security of digital payments. While there might be some challenges in implementation, the benefits of this feature outweigh the challenges. By implementing per transaction limit, Indian banks can provide their users with a more secure and convenient digital payment experience.