Lok Sabha Question No. 1158 (UNSTARRED), answered on 2023-12-11
Subject: UPI Fraud Cases
Ministry: FINANCE
Asked by: Beesetti  Venkata Satyavathi

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES LOK SABHA UNSTARRED QUESTION NO. 1158

ANSWERED ON MONDAY, DECEMBER 11, 2023/AGRAHAYANA 20,1945 (SAKA)

## UPI Fraud Cases

## 1158.   DR. BEESETTI VENKATA SATYAVATHI:

Will the Minister of FINANCE be pleased to state:

- (a)  the steps being taken by the Government to address the rising number of UPI fraud cases in the country;
- (b)  whether  the  Government  is  collaborating  with  UPI  service  providers  and  financial  institutions  to implement stronger security measures and prevent fraudulent activities on the UPI platform;
- (c)  if so, the details thereof and if not, the reasons therefor; and
- (d)    the  details  on  the  financial  compensation  or  assistance  being  given to  victims  of UPI  fraud  in  the country?

## Answer

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (DR BHAGWAT KARAD)

(a) to (c) National Payments Corporation of India (NPCI)  has taken various measures to address the UPI fraud cases which include, inter alia , (i) stringent device binding between customer's mobile number and his/her device, (ii) use of two factor authentication, (iii) features in UPI app which notifies the customer on the app itself during transaction journey, (iv) daily limits for debit in a customer's account and (v) limits & curbs on use cases which are abused by fraudsters.

Further, NPCI provides a free of cost fraud monitoring solution to all banks to enable them to alert & decline transactions for fraud mitigation, uses Artificial Intelligence/Machine Learning based models to give a risk score to banks. NPCI also coordinates with various Government departments, Reserve Bank of India (RBI) and facilitates Law Enforcement Agencies (LEAs) and banks by providing an Application Programming  Interface  (API)  to  platforms  such  as  National  Cyber  Crime  Reporting  Portal  (I4C)  and Cybersafe (Intelligence Bureau) that provides instant beneficiary details for a ticket that is raised.

Ministry of Home Affairs (MHA) created Indian Cybercrime Coordination Centre (I4C) to deal with cybercrime in coordinated and effective manner. National Cybercrime Reporting Portal (www.cybercrime.gov.in)  is  an  initiative  of  Government  of  India  to  facilitate  victims/complainants  to report cybercrime complaints online 24x7 basis. 'Cyber Jaagrookta (awareness) Diwas' is celebrated on the first Wednesday of every month coupled with social media based cyber awareness campaign on various platforms  for  various  cybercrime.  RBI  has  also  operationalized  Central  Payments  Fraud  Information Registry (CPFIR), a web-based payment-related fraud reporting solution.

- (d)  RBI  had  issued  instructions  to  banks  regarding  limiting  the  customer  liabilities  in  unauthorized/ fraudulent electronic transactions, vide circulars dated July 6, 2017 and December 14, 2017 for Commercial banks and Cooperative banks respectively, wherein, the criteria for determining the limited liability of the customer in various types of digital transactions are outlined.