India’s digital payment ecosystem has witnessed a remarkable surge, with total transactions crossing 18,000 crore in FY 2024-25 (till January 2025). This impressive growth is mainly fueled by the rise of UPI, better partnerships in the fintech space, and government efforts to encourage cashless payments. To keep things secure, the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) have rolled out AI-powered fraud detection systems and awareness campaigns aimed at tackling financial cybercrimes. Plus, the government has beefed up cybercrime reporting systems to make digital transactions safer for everyone.
Key Highlights
• Digital payments, including UPI transactions, have skyrocketed to a whopping 18,120.82 crore transactions as of January 2025.
• We’ve seen a remarkable increase in digital transaction volume over the past five financial years.
• The RBI and NPCI have rolled out AI-driven fraud prevention measures along with awareness campaigns.
• The government is taking steps to tackle financial cybercrimes, launching initiatives like the National Cybercrime Reporting Portal and Helpline (1930).
Growth in Digital Payments (Last Five Financial Years)
- Financial Year Volume (in Crore Transactions) Value (in Lakh Crore ₹)
- 2020-21 4,370.68 1,414.58
- 2021-22 7,197.68 1,744.01
- 2022-23 11,393.82 2,086.85
- 2023-24 16,443.02 2,428.24
- 2024-25 (Till Jan 2025) 18,120.82 2,330.72
- Transaction volume has more than quadrupled since 2020-21!
Measures to Prevent UPI and Digital Payment Frauds
1. AI/ML-Based Fraud Prevention by NPCI
- Device Binding: Transactions are linked to a customer’s mobile number & device.
- Two-Factor Authentication: PIN-based verification for secure transactions.
- Daily Transaction Limits: Caps on high-value transactions to minimize fraud.
- AI/ML Fraud Monitoring Solutions: NPCI alerts banks and declines suspicious transactions using AI-based models.
2. RBI & Banks’ Awareness Campaigns
- SMS Alerts: Quick fraud prevention messages to users.
- Radio & Public Awareness: National campaigns on cybercrime prevention.
3. Cybercrime Reporting & Helplines
- National Cybercrime Reporting Portal: www.cybercrime.gov.in
- Cybercrime Helpline: Call 1930 for immediate fraud reporting.
Department of Telecommunications Initiatives
- Digital Intelligence Platform (DIP): Tracks fraud transactions.
- ‘Chakshu’ Facility: Enables reporting of fraud calls, SMS, or WhatsApp messages.
