UPI– There is a major update for UPI users. The Government of India will now block UPI transactions made on certain mobile numbers. Yes, this is because the Department of Telecommunications i.e. DoT has launched a new Financial Fraud Risk Indicator on Wednesday. This service will analyze mobile numbers and block transactions on high-risk numbers. According to the government, this new tool has been created to actively detect and prevent financial fraud in the country.
Secure digital ecosystem will be available
DoT says that this new FRI system is part of its Digital Intelligence Platform (DIP), which aims to create a secure digital ecosystem for financial transactions. The purpose of FRI is to help banking, non-banking financial companies and UPI service providers identify risky transactions before they are completed. Let us tell you that currently platforms like PhonePe, Paytm and Google Pay together manage more than 90 percent of UPI transaction volume in India.
The Department of Telecommunications has stated that the FRI system will mark mobile numbers that have been associated or reported with cyber crime, failed verification processes and regulatory breaches. It will then divide these numbers into three categories based on the risk level – medium, high and very high.
The Department of Telecommunications has stated that this classification of mobile numbers will be done using data from the National Cyber Crime Reporting Portal (NCRP), the Chakshu platform of the Department of Telecommunications and intelligence inputs from banks and other financial institutions.
Incidents of cyber fraud are on the rise
Let us tell you that the FRI system has come at a time when incidents of cyber fraud are very high in India. Fraudsters are using different methods to cheat people and are often using newly activated SIM cards to carry out these scams.