Banks' New Plan to Curb UPI Frauds

With the rapid rise in digital payments across India, banks have proposed an additional security layer to make UPI transactions safer. Under the proposal, if a transaction is flagged as suspicious by a bank's fraud detection system, users will receive a confirmation prompt asking whether they wish to proceed with the payment. The transaction will be completed only after the user confirms it.

Banks clarified that this extra verification will not apply to all UPI payments. Regular transactions will continue without interruption, while only high risk or suspicious transactions will require additional confirmation. The move is aimed at giving users an opportunity to review the payment before money is transferred.

Banks have also opposed introducing mandatory delays for all high value UPI transactions, stating that it would reduce the speed and convenience of the platform. The proposal comes amid a rise in UPI frauds involving fake customer care numbers, phishing calls, and fraudulent messages. The proposal is currently under the Reserve Bank of India (RBI)'s consideration.