NPCI is taking new strict steps to stop the increasing fraud in digital payments. According to reports, to stop digital frauds, National Payments Corporation of India (NPCI) is in talks with banks to remove ‘pull transactions’ on UPI.
Most digital frauds through UPI are done through pull transactions. Now NPCI is trying to reduce fraud by removing this feature.
That is, if this change is implemented, then online fraud can be curbed and transactions will become more secure than before. What is Pull Transaction and how will it affect common users? Let’s know the full news…
What is a pull transaction?
Many people may not know what a pull transaction is… So let us tell you that when a request for payment is sent by the merchant to the customer, it is called a ‘pull transaction’. Whereas, when the customer makes a transaction through QR or any other medium, it is called a ‘push transaction’.
What will be the impact of removing pull transactions?
NDTV Profit reported that removing ‘pull transactions’ could reduce the number of fraud cases. But some bankers say that this will also affect genuine transactions and will impact efficiency.
However, no statement has been made on this by NPCI, the government company that operates the retail payment and settlement system in India. The report said that the talks are still in the initial stage and a final decision on its implementation is yet to be taken.
Number of UPI transactions crossed 16 billion in February
This development has come at a time when UPI is becoming increasingly popular for payment in the country. In February alone, the number of UPI transactions crossed 16 billion, with a total transaction value of more than Rs 21 lakh crore. The number of UPI transactions is expected to increase by 46 percent year-on-year to 172.2 billion in 2024, from 117.7 billion in 2023.
There is a flood of complaints related to digital payments and loans
The Reserve Bank of India (RBI) recently stressed the importance of an awareness initiative to make people aware of these frauds. RBI data shows that complaints related to digital payments and loans remain a major concern. Between April and June of the current financial year, the RBI Ombudsman received 14,401 complaints. At the same time, 12,744 complaints have been registered in the next quarter of July to September.
The December 2024 Financial Stability Report states that issues related to loans and digital payments accounted for more than 70 per cent of the total complaints in the first half of the financial year 2024-25.
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