Banks propose Yes-No prompts for risky UPI transfers, sidestepping one-hour credit delays
Banks have proposed a risk-based confirmation prompt for anomalous UPI P2P payments, with thresholds starting at ₹10,000, as an alternative to delayed credit. The move could add checkout friction for QR-linked small merchants whose payments are classified as P2P.
Indian banks have proposed a risk-based Yes-No payment confirmation prompt for anomalous UPI P2P transfers, instead of RBI’s proposed one-hour delayed credit. NPCI reportedly opposes broad friction. QR-linked small merchants may be affected because some merchant payments are technically P2P.
Why this matters
The proposal follows NPCI’s push to reshape UPI identity and payment surfaces: it asked apps to mask phone numbers and move new users to username IDs, then expanded mobile-number masking on payment screens. It adds a risk-control layer that could affect merchant-like P2P flows.
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