One-Third Of UPI Payments Remain Unprotected: DOT Raises Concerns

Google Pay Not Integrated In FRI System Yet

Telecom Department Secretary Neeraj Mittal has stated that Google Pay is still not included in the Fraud Risk Indicator (FRI) system. Thus, transactions performed on the platform don't possess additional safety against fraud currently. According to the Department of Telecommunications (DoT), nearly one-third of UPI payments are considered unsafe as they are not covered under the FRI cover.

Purpose and Purpose of the Fraud Risk Indicator (FRI)

The DoT rolled out the Financial Fraud Risk Indicator (FRI) to reduce cyber fraud cases in the financial sector. FRI works by leveraging data published in advance with banks, UPI service providers, and financial institutions. Upon making a digital transaction to a mobile number, FRI determines the risk level of the number and categorizes it as medium, high, or very high.

Security Measures Depending on Risk Levels

If a mobile number is recognized as a high-risk mobile number, banks, NBFCs, and UPI interfaces may levy additional security measures prior to making payments. This prevents fraud or unauthorized transactions.

Current Adoption and Market Impact

PhonePe and Paytm have already been integrated with the FRI system in place. Google Pay, handling about 30–35% of UPI transactions in India, hasn't been done so yet. The deficit leaves an even greater number of users vulnerable to danger when they perform digital payments using the platform.