As UPI fraud worries rise, can the e-rupee be a safer way to pay?
Subscribe to enjoy similar stories.If you’ve ever hesitated before approving a UPI request or double-checked a QR code before scanning, you’re not alone. As UPI becomes central to everyday payments, concerns around fraud are rising alongside its growth.As per government data shared in Parliament, 10.64 lakh UPI fraud cases worth ₹805 crore were reported in FY26 (till November).The Reserve Bank of India’s proposal to introduce a one-hour cooling-off period for new or high-value UPI payments above ₹10,000 is the latest step aimed at curbing such frauds.At the same time, another digital payment option has quietly evolved in the background: the e-rupee, or India’s central bank digital currency (CBDC).
After nearly three years of pilot runs, the question arises — could this form of digital cash offer a safer alternative to UPI? The answer lies in understanding how differently the two systems work.For most users, paying via UPI and paying with the e-rupee can look similar. Both involve scanning a QR code and approving a transaction on your phone, after which money moves from the sender to the receiver.But the underlying architecture is fundamentally different.In a UPI transaction, money moves from one bank account to another through a network involving banks and settlement systems.“UPI is an overlay payments system on bank accounts, cards and credit lines to transfer funds,” said Mihir Gandhi, partner and payments transformation leader, PwC India.The e-rupee operates differently.
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