Module: General Practice
Q19: Consider the following statements regarding the new digital payment safeguards:
Statement 1: The RBI regulates and oversees all digital payment systems in India under the statutory framework of the Payment and Settlement Systems Act, 2007.
Statement 2: To curb the rising instances of immediate fund siphoning, the RBI has introduced a "lagged credit" mechanism for first-time digital transfers between two unrelated users.
Statement 3: The mandated time delay (lag) before the credit reflects in the beneficiary's account for these first-time, high-value transfers is set at a strict 4 hours.
Statement 4: This 4-hour lagged credit safeguard applies specifically to initial digital transactions that exceed a threshold of ₹50,000.
Which of the above statements is/are correct?
Statement 2: To curb the rising instances of immediate fund siphoning, the RBI has introduced a "lagged credit" mechanism for first-time digital transfers between two unrelated users.
Statement 3: The mandated time delay (lag) before the credit reflects in the beneficiary's account for these first-time, high-value transfers is set at a strict 4 hours.
Statement 4: This 4-hour lagged credit safeguard applies specifically to initial digital transactions that exceed a threshold of ₹50,000.
Which of the above statements is/are correct?
✅ Correct Answer: D
🎯 Quick Answer:
All statements are correct. (Option D)Once money is transferred, a fraudster can instantly withdraw it. "Lagged credit" introduces a friction point—a cooling-off period where the money leaves the sender's account but is held in transit before hitting the receiver's account.
Structural Breakdown: During this lag, if the sender realizes they are being scammed (e.g., a fake customs officer call), they have a window to contact their bank and reverse the transaction before the fraudster can access the funds.
Historical / Static Context: The Payment and Settlement Systems (PSS) Act, 2007, gives the RBI absolute authority to dictate the technical and operational parameters of all payment gateways and networks in India.
The Dynamic Update (NEW) & Data: The February 2026 regulatory policy qualitatively introduces this "lagged credit" friction specifically for first-time interactions between two accounts to prevent immediate siphoning (Statement 2). The hard data parameters mandate a 4-hour delay (Statement 3) strictly for initial transactions exceeding ₹50,000 (Statement 4), balancing security without disrupting daily micro-transactions.