Lok Sabha Question No. 2534 (UNSTARRED), answered on 2025-03-17
Subject: Security of Digital Transaction Platforms
Ministry: FINANCE
Asked by: Shri Anup Sanjay Dhotre, Dr. D Ravi Kumar, Shri Rajeev Rai

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 2534

ANSWERED ON MONDAY, MARCH 17, 2025/PHALGUNA 26, 1946 (SAKA)

## SECURITY OF DIGITAL TRANSACTION PLATFORM

## † 2534. SHRI RAJEEV RAI:

SHRI ANUP SANJAY DHOTRE:

DR. D RAVI KUMAR:

Will the Minister of FINANCE be pleased to state:

(a) the total number of Unified Payments Interface (UPI) transactions conducted in the country during the last three years and the current year;

- (b) whether the Government is aware of the UPI (Unified Payments Interface) frauds that are happening in the country and if so, the details of frauds reported during the last three years and the steps taken by the Government to mitigate risks associated with UPI payments;
- (c) whether any effective steps taken by the Government to ensure security of digital transaction platforms in the country and if so, the details thereof along with the challenges and risks associated with UPI cash deposits;
- (d) whether the Government has received any complaints of fraudulent withdrawal of money through  digital  transactions  from  bank  accounts  of  senior  citizens  who  have  not  yet  adopted  digital transactions and online banking facilities;
- (e) if so, the details of such complaints received in Delhi along with the action taken by the Government thereon, district-wise; and

(f) whether the Government has any plans to integrate UPI with fast payment systems of other countries for cross-border transactions and the way by which it will benefit individuals and the financial sector?

## Answer

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) The total number of Unified Payments Interface (UPI) transactions conducted in the country during the last three financial years and the current financial year are attached as Annexure-I

(b) and (c) With increasing digital payment transactions in the country, incidences of digital financial frauds including UPI frauds have also gone up in the last few years. The details of frauds reported in the country during the last three financial years are attached as Annexure-II.

In order to prevent payment-related frauds, including UPI transaction frauds, various initiatives have been taken up by the Government, the Reserve Bank of India (RBI), and the National Payments Corporation of India (NPCI). These, inter alia, include device binding between the customer's mobile number and device, two-factor authentication through PIN, daily transaction limits, and restrictions on use cases. NPCI also provides  a  fraud  monitoring  solution  to  all  the  banks  to  generate  alerts  and  decline  transactions  using AI/ML-based models. RBI and banks have been conducting awareness campaigns through short SMS, radio campaigns, and publicity on the prevention of cyber-crime.

Further to facilitate the reporting of financial frauds, the Ministry of Home Affairs (MHA) has launched a National  Cybercrime  Reporting  Portal  (www.cybercrime.gov.in)  and  a  National  Cybercrime  Helpline Number  (1930).  Moreover,  the  Department  of  Telecommunications  (DoT)  has  launched  the  Digital Intelligence Platform (DIP) and the 'Chakshu' facility, which enable citizens to report suspected fraudulent communications received via call, SMS, or WhatsApp.

The NPCI has informed that UPI Interoperable Cash Deposits (ICD) service was launched in September 2024  and  it  has  been  supported  by  over  2,400  Cash  Recyclers  in  India.  This  service  ensures  secure transactions  through  a  dual  validation  process,  verifying  the  beneficiary's  account  and  requiring  the depositor to authenticate with their UPI PIN before activating the cash slot.

(d) and (e) RBI has informed that they do not have any information in the matter.

(f) The Government and RBI has been working towards linking UPI with the Fast Payment Systems (FPSs) of other countries to facilitate cross-border payments. These efforts include interlinking the FPS on inraoperable basis as well as provisioning of payments infrastructure in other countries. Presently UPI is live in 7 countries (UAE, Nepal, Bhutan, Singapore, Mauritius, France and Sri Lanka).

Interlinking of UPI with the fast payment systems of other countries will enable the users making realtime, transparent and cost-effective digital payment transactions. This will ensure seamless remittance transfer and will help Indian tourists visiting abroad for making seamless payments.

******

## Annexure I

## UPI transactions during the last three financial years and the current financial year

| Financial Year           | Volume (in Crore)   |   Value (in lakh Crore) |
|--------------------------|---------------------|-------------------------|
| FY 2021-22               | 4,595.61            |                   84.16 |
| FY 2022-23               | 8,371.44            |                  139.15 |
| FY 2023-24               | 13,112.95           |                  199.95 |
| FY 2024-25 (till Feb'25) | 16,756.45           |                  235.8  |

## Annexure II

## UPI Domestic Payment Frauds during last 3 financial years

| Financial Year   |   No. of incidents (in Lakhs) | Amount Involved (INR Crore)   |
|------------------|-------------------------------|-------------------------------|
| FY 2021-22       |                          4.07 | 242                           |
| FY 2022-23       |                          7.25 | 573                           |
| FY 2023-24       |                         13.42 | 1,087                         |