The National Payments Corporation of India is introducing a new safety feature which aims to reduce digital payment fraud. Whenever a user scans a QR code or enters a mobile number, UPI apps will display the recipient’s verified bank-registered name directly on the screen.
This update removes custom nicknames and unverified tags which makes it far more difficult for scammers to deceive users.
How will the new framework impact UPI users? Rohit Mahajan, Founder & CEO, plutos ONE told Zee News that the proposed changes are the steps for UPI, where security and trust are as important as convenience.
“The biggest change is that users will need to do a verification step for big transactions, not just use their UPI PIN. This extra step could be using their fingerprint. Verifying the device they are using,” Mahajan said.
However he added that for small transactions the impact is expected to be minimal, but for payments users will have an extra security check before the transaction is done. This may take a second longer but it will greatly reduce fraud, unauthorized transactions and scams.
Another key change is that the name of the verified beneficiary will be shown before payment confirmation. This can help prevent transfers and fake collections. These changes will make people more confident in using UPI for payments like education fees, healthcare costs, insurance premiums and investments. As UPI transactions and values grow stronger security controls are needed to keep India’s digital payments system secure and scalable.
Does PIN-based verification on payment platforms also mean that UPI related frauds will be minimized? Mahajan cautions, though extra authentication will reduce fraud. It won’t eliminate it completely.
“Many UPI frauds happen because scammers trick users into sharing OTPs or installing apps. The extra verification for transactions will add protection against account takeover and suspicious transactions. Even if a scammer gets a user’s PIN they still can’t complete a transaction without the authentication.”
A major precution users can take is self awareness. Technology alone can’t stop all fraud, users must still verify details, not share sensitive info and be cautious of fake payment requests. Overall stronger authentication will reduce UPI frauds for bigger transactions and increase trust in digital payments. UPI security is important. These changes will make UPI more secure. UPI transactions will be safer, with these security measures.
