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

During the last financial year in the country, frauds related to online payments increased by more than 400 percent to Rs 14.57 billion. Digital payments have grown rapidly with the introduction of Unified Payments Interface (UPI). With this, users can easily transfer payments from their smartphones.

Data from the Reserve Bank of India (RBI) has shown that in the last two years UPI The value of transactions 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 section of the population can become victims of such frauds. Fraudsters are advancing, while financial institutions and fintech companies are struggling for market share and growth. Are.”

RBI has started several campaigns to make consumers aware about financial fraud. 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 had described it as connecting historical relations with modern digital technology. He expressed hope that new fintech services will help both the countries. Modi said that UPI has taken up the new responsibility of uniting allies with India.

UPI provides the facility to send money through mobile 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 meet its target of 10 lakh transactions per day by the end of last year. At the end of last year, some big government and private banks had transferred the amount related to employee benefit schemes to the CBDC wallets of employees. Central Bank Digital Currency (CBDC) or e-Rupee has been created through distributed ledger technology as a digital alternative to cash.