SRINAGAR: Fraud linked to the Unified Payments Interface has surged sharply in recent years, with over 53 lakh cases involving Rs 3867 crore reported since 2022, the Government informed the Rajya Sabha on Tuesday, highlighting growing risks alongside India’s digital payments boom.
In a written reply, Minister of State for Finance Pankaj Chaudhary said that incidents of UPI fraud have risen in tandem with the rapid expansion of digital transactions, with data from the Reserve Bank of India indicating a steep upward trend in both volume and value.
The number of reported fraud incidents increased from 4.07 lakh cases involving Rs 242 crore in 2021–22 to 7.25 lakh cases (Rs 573 crore) in 2022–23, before nearly doubling to 13.42 lakh cases (Rs 1087 crore) in 2023–24. While cases dipped marginally to 12.64 lakh (Rs 981 crore) in 2024–25, the current financial year has already seen 16.29 lakh incidents involving Rs 1226.37 crore up to March 15, 2025–26, marking the highest level so far.
The combined data from multiple parliamentary replies shows that fraud complaints have escalated rapidly in the last three years alone, with more than 33 lakh cases and Rs 2641 crore reported between 2022–23 and 2024–25.
The government said it is working closely with the National Payments Corporation of India and the RBI to strengthen fraud detection and prevention systems. Key safeguards include device binding between a user’s mobile number and handset, two-factor authentication through PIN, transaction limits, and restrictions on specific use cases.
Additionally, NPCI has deployed AI and machine learning-based fraud monitoring systems that generate real-time alerts and can automatically decline suspicious transactions. Integration with systems such as I4C under the Ministry of Home Affairs allows tracking of fraudulent accounts and quicker response by banks.
The Centre also highlighted ongoing awareness campaigns through SMS alerts, radio broadcasts and public messaging to educate users about cyber fraud risks.
On regulatory measures, the government said the RBI has revisited its 2017 guidelines on customer liability in unauthorised electronic transactions. Revised norms, including a proposed compensation framework for small-value digital frauds, were released for public consultation on March 6, 2026.
However, the government clarified that it has not received any formal notice regarding a reported High Court observation in February 2026 on UPI fraud safeguards.
The responses were provided to queries raised by Rajya Sabha members including Ashok Singh, Ranjeet Ranjan, Haris Beeran and Shaktisinh Gohil, reflecting rising concern over the security of India’s fast-expanding digital payments ecosystem.
Even as policy interventions and technological safeguards are being scaled up, the data underscores a parallel challenge—ensuring user trust and system resilience in one of the world’s largest real-time payment networks.
