Digital Payments Surge Amid Security Enhancements
Digital payment transactions, particularly through the Unified Payment Interface (UPI), have seen a remarkable increase over the past five financial years. The total volume and value of these transactions have consistently risen, reflecting a growing trend in the adoption of digital payment methods across the country. In response to this surge, the government and financial institutions have implemented various security measures to combat payment-related fraud.
Transaction Growth Over Five Years
According to recent data, the total digital payment transactions have shown significant growth from the financial year 2020-21 to 2024-25. In 2020-21, the volume of transactions was approximately 4,370.68 crore, with a total value of 1,414.58 lakh crore. The following year, 2021-22, saw an increase to 7,197.68 crore transactions valued at 1,744.01 lakh crore. The upward trend continued in 2022-23, where transactions reached 11,393.82 crore, amounting to 2,086.85 lakh crore. Projections for the current financial year, 2023-24, estimate around 16,443.02 crore transactions valued at 2,428.24 lakh crore. Looking ahead, the forecast for 2024-25 suggests a further rise to 18,120.82 crore transactions, with a value of 2,330.72 lakh crore.
Government Initiatives to Combat Fraud
To address the increasing concerns over payment-related fraud, the government, along with the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI), has launched several initiatives. These measures include device binding, which links a customer’s mobile number to their device, and two-factor authentication via PINs. Additionally, daily transaction limits and restrictions on specific use cases have been implemented to enhance security. The NPCI has also introduced a fraud monitoring solution for banks, utilizing AI and machine learning to generate alerts and decline suspicious transactions.
Public Awareness and Reporting Mechanisms
In an effort to raise awareness about cybercrime and financial fraud, the RBI and various banks have initiated campaigns through SMS, radio, and other media. Furthermore, the Ministry of Home Affairs has established a National Cybercrime Reporting Portal (www.cybercrime.gov.in) and a helpline number, 1930, to assist citizens in reporting cyber incidents. The Department of Telecommunications has also introduced the Digital Intelligence Platform (DIP) and the ‘Chakshu’ facility, enabling individuals to report fraudulent communications received via calls, SMS, or WhatsApp.
Official Statements on Digital Payment Security
During a recent session in the Rajya Sabha, Minister of State for Finance, Shri Pankaj Chaudhary, provided insights into the government’s ongoing efforts to enhance the security of digital payment systems. He emphasized the importance of these initiatives in safeguarding users against potential fraud while promoting the continued growth of digital transactions.
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