NPCI and Banks Unite to Fight UPI Fraud

Federated Model and AI Tools to Spot Suspicious Transactions

The National Payments Corporation of India (NPCI) is trialing a ‘federated model’ with banks to combat fraud in UPI transactions. This partnership aims to exchange customer scores between NPCI and banks, bolstering security measures.

Harnessing AI and Machine Learning

NPCI is also using AI and machine learning tools to detect suspicious UPI transactions. In March, an impressive 18.3 billion transactions worth Rs 24 lakh crore were handled through UPI, indicating a 35% year-on-year growth in volume and 25% year-on-year growth in value.

• Collaboration between NPCI and banks on a ‘federated model’
• Sharing of customer scores between agencies
• Use of AI and machine learning tools to identify suspicious transactions
• 18.3 billion UPI transactions in March 2023

Viswanath Krishnamurthy, NPCI’s chief risk officer, highlighted the significance of this collaboration in ensuring secure transactions for users.