UPI Scams Get a Major Fix: Payment Requests to Be Blocked from October
UPI scams have caused significant losses, with people falling prey to fraudsters exploiting the convenience of digital payments. Apps like Paytm, Google Pay, and PhonePe use secure four- or six-digit passcodes, and banks operate with robust security. Yet, most scams occur when users are rushed or in vulnerable situations, sometimes even linked to online shopping or delivery services.
To curb this, the National Payments Corporation of India (NPCI), the apex UPI authority, is introducing a crucial change: blocking one of the main channels used by scammers. From October 1, UPI payment requests will no longer be allowed, putting an end to a common method of fraud.
Why Payment Requests Became Risky
Payment requests were originally designed to make transfers easier. However, scammers began sending fake requests that appeared legitimate, tricking users into authorizing payments. Cases on platforms like OLX have seen people lose money while attempting to buy used items. With the new rules, banks and UPI apps must update their systems to block these requests after October 2, making UPI transactions safer.
Other UPI Updates
NPCI has also revised limits for UPI Lite, the prepaid wallet feature within UPI. The wallet’s top-up limit has increased from ₹2,000 to ₹5,000, and single payment limits have doubled from ₹500 to ₹1,000. Additionally, the UPI Lite auto top-up feature allows users to maintain a set balance automatically, eliminating the need for manual recharges.
