Reserve Bank of India Deputy Governor T. Rabi Sankar stated that frauds in India’s payment systems, particularly UPI, are showing a downward trend. Enhanced security measures, AI-driven monitoring, and awareness campaigns have contributed to this improvement. The RBI continues to strengthen digital payment infrastructure to ensure safer transactions for consumers.
India’s central bank has reported encouraging progress in curbing frauds across digital payment systems. Deputy Governor T. Rabi Sankar noted that incidents of fraud, especially in the Unified Payments Interface (UPI) ecosystem, are coming down. This reflects the impact of regulatory vigilance, technological upgrades, and coordinated efforts by the RBI, NPCI, and banks.
Recent data indicates that while UPI usage continues to surge crossing billions of monthly transactions the proportion of fraudulent activity has declined. Initiatives such as device binding, two-factor authentication, AI-based fraud detection, and consumer awareness drives have played a key role in reducing risks.
Key Highlights:
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Fraud Trend: Decline in payment system frauds, particularly UPI.
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Security Measures: Device binding, two-factor authentication, and AI monitoring deployed.
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Awareness Campaigns: RBI and NPCI actively educating users on safe digital practices.
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Transaction Growth: UPI transactions grew over 30% year-on-year, showing strong adoption.
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Policy Focus: RBI working on a Digital Payments Intelligence Platform for real-time fraud detection.
This development underscores India’s progress in building a secure, scalable, and trusted digital payments ecosystem, balancing rapid adoption with robust safeguards.
Sources: Economic Times, Free Press Journal, Press Information Bureau