Money Credited to UPI From Abroad Without Consent? Government Gives Clear Answer

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UPI Payments: Nowadays, almost everyone prefers online payments. Online payments have simplified many tasks, as there’s no longer the hassle of repeatedly visiting ATMs to withdraw cash, nor the hassle of carrying change. Most people in the country use the Unified Payments Interface (UPI) for payments. Senior BJP MP Dr. Radha Mohan Das Aggarwal has raised a serious question in the Rajya Sabha regarding its security and related legal implications.

He drew the government’s attention to the danger that anyone could send money to an innocent citizen’s account without their consent, potentially entangle them in legal trouble. In the House, Dr. Agarwal asked Union Minister of State for Finance Pankaj Chaudhary whether the government was aware of the risk that ‘illicit money’ sent from foreign soil, following the international expansion of UPI, could inadvertently make an Indian a criminal.

Dr. Agarwal asked, “If the person sending the money is involved in illegal or criminal activities, would the innocent person receiving the money also be considered complicit in those crimes?” He then added that the government had recently linked UPI to eight foreign countries: Bhutan, France, Mauritius, Nepal, Qatar, Singapore, Sri Lanka, and the United Arab Emirates ( UAE ).

So, if someone from one of these countries, such as Mauritius, transfers money to an Indian’s account, and that account later becomes embroiled in an investigation or money laundering case, will that Indian citizen also be considered involved in corruption or crime simply because the money arrived? Is the government considering introducing a provision in the UPI system that would protect recipients from legal trouble in the event of unintentional money transfers?

Minister of State for Finance gave this answer

Minister of State for Finance, Pankaj Chaudhary, responding to the House, stated that the question raised by the honorable member is extremely important. He acknowledged that the possibility of money being transferred to someone’s account without permission may exist, and this is a matter for investigation. The Minister further stated that the honorable member’s points and suggestions have been noted. The government will certainly take action on this issue.

This question has come up at a time when UPI is now the go-to digital payment method in India. With its recent international growth, concerns about security, privacy, and legal accountability have become even more pressing. Experts suggest that we need clear legal frameworks and protections to make sure regular folks don’t accidentally get caught up in legal issues.

Here are some things UPI users should remember:

1. Don’t share your UPI ID in public.

2. If you receive any unexpected money in your account, report it to your bank and the cyber cell right away.

3. Avoid using that money, as it might be linked to a bigger investigation.

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