Mumbai, March 18 In an effort to curb rising digital frauds, the National Payments Corporation of India (NPCI) is reportedly in early discussions with banks to eliminate ‘pull transactions’ on the Unified Payments Interface (UPI).
Most frauds are happening through the pull method, and NPCI is exploring the possibility of removing this feature altogether to reduce fraudulent activities.
A 'pull transaction' happens when a merchant sends a payment request to a customer, while a 'push transaction' occurs when a customer directly makes the payment using a QR code or other methods.
However, NPCI, which operates retail payment and settlement systems in India, has not commented on this development yet.
The discussions are still at an early stage, and a final decision on implementation has not been made yet, the report said.
This development comes at a time when UPI payments are gaining immense popularity in the country. In February alone, UPI transactions crossed 16 billion, with the total transaction value exceeding Rs 21 lakh crore.
In 2024, UPI transactions surged nearly 46 per cent, reaching a record 172.2 billion, up from 117.7 billion in 2023.
With the increasing number of digital transactions, incidents of cyber fraud have also risen. Fraudsters are using new techniques to deceive people, leading to financial losses and emotional distress.
The Reserve Bank of India (RBI) recently emphasised the importance of preventive awareness initiatives to educate people about these scams.
RBI data shows that complaints regarding digital payments and loans remain a major concern. Between April and June of the current financial year (FY25), the RBI Ombudsman received 14,401 complaints.
In the following quarter, from July to September, 12,744 complaints were recorded. The Financial Stability Report for December 2024 highlighted that issues related to loans and digital payment modes accounted for over 70 per cent of the total complaints in the first half of the 2024-25 financial year.
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