UPI Security: Safeguarding transactions in the digital age

financialexpress.com:

In today’s fast-moving digital world, the payments and finance landscape is constantly transforming. Gone are the days when you had to carry bulky wallets and fumble for cash; in their place, digital payment systems have emerged as the new alternative. Among all the recent innovations in the payment ecosystem, the Unified Payments Interface (UPI) tops the list in India, offering a seamless and efficient means of transferring money.

The Unified Payments Interface (UPI), introduced by the National Payments Corporation of India (NPCI) in 2016, is a real-time payment system enabling seamless, instant, and secure transactions between banks and various payment service providers through a single platform. Since its inception, UPI has grown exponentially, processing billions of transactions every month. With its user-friendly interface and interoperability, UPI has transformed how we transact, allowing individuals from all walks of life to engage in cashless transactions effortlessly. In August 2023, UPI achieved an impressive milestone of more than 10 billion transactions in a month.

The recent launch of new products by NPCI has increased the importance of implementing robust security measures. The new gamut of products, such as Credit Line on UPI, UPI LITE X, Tap & Pay, and Hello! UPI: Conversational Payments on UPI and BillPay Connect: Conversational bill payments are designed to build an inclusive, resilient, and sustainable digital payment ecosystem. According to the Reserve Bank’s Annual Report 2022–23, the number of frauds in the banking sector increased year-on-year to 13,530 last year.

Also Read: Credit score based home loans at below 9% – Check latest rates

The bedrock of UPI’s security architecture lies in its