Online Payment Frauds Increase More than 400 Percent in India: RBI Data Shows

Online payment frauds in the country rose by more than 400 percent to Rs 14.57 billion during the last financial year. Digital payments have grown rapidly since the introduction of the Unified Payments Interface (UPI). This allows users to easily transfer payments from their smartphones.

Data from the Reserve Bank of India (RBI) showed that in the last two years UPI The value of transactions done through digital payments increased by about 137 percent to about Rs 200 lakh crore. Nikhil Jois, Head of Growth at fraud detection platform Bureau, said that the increasing popularity of digital payments has increased the target for fraudsters. He said, “Due to lack of financial literacy and low use of technology, a large part of the population can become a victim of such frauds. Fraudsters are becoming advanced, while financial institutions and fintech companies are struggling for market share and growth.”

RBI has started several campaigns to make consumers aware of financial frauds. UPI is also being expanded abroad. UPI service has been launched in Sri Lanka and Mauritius. RuPay card service has also been launched in Mauritius. This will make UPI service available to Indians traveling to Sri Lanka and Mauritius. Prime Minister Modi described it as connecting historical relations with modern digital technology. He hoped that new fintech services will help both countries. Modi said that UPI has taken on a new responsibility to unite allies with India.

In UPI Mobile There is a facility to send money through apps. In the last few months, the scope of digital rupee has also increased in the country. This has made it easier for RBI to achieve its target of 10 lakh transactions per day by the end of last year. At the end of last year, some big public and private banks transferred the amount related to employee benefit schemes to the CBDC wallets of employees. Central Bank Digital Currency (CBDC) or e-rupee has been developed through distributed laser technology as a digital alternative to cash.