India’s digital payment ecosystem keeps climbing towards the summit, with over 18,120.82 crore transactions recorded in the financial year 2024-25 (till January 2025), as per a Press Release published on the Press Information Bureau (PIB) website on March 11, 2025.
The data, released by the Ministry of Finance, compares figures over the past five years. Meanwhile, digital transactions have seen an impressive 4x growth, rising from 4,370.68 crore transactions in FY 2020-21 to 18,120.82 crore in FY 2024-25. Despite a slight dip in total transaction value from ₹2,428.24 lakh crore in FY 2023-24 to ₹2,330.72 lakh crore in FY 2024-25, the surge in transaction volume is indicative of India’s widening digital economy.
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The increased reliance on the digital economy comes with its fair share of obstacles and hurdles, with the most significant one being employing a robust security framework to prop up the dynamic economy.
One of the key security measures introduced is Device Binding, which ensures that transactions can only be conducted from a registered mobile number and device.
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Another crucial security layer is Two-Factor Authentication (2FA). This system requires users to verify transactions using a PIN-based security mechanism, ensuring that even if a fraudster gains access to login credentials, they cannot complete unauthorized transactions without the second authentication factor. This helps prevent unauthorized access and fraudulent transactions from unrecognized devices.
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To limit potential financial losses in case of fraud, Daily Transaction Limits have been imposed on UPI and other digital payment methods. The restrictions serve as a direct deterrent to delinquent entities who may seek to pull huge amounts from unsuspecting targets.
Additionally, AI and Machine Learning (ML)-Based Fraud Detection systems have been deployed by NPCI to enhance security. These advanced models analyze transaction patterns, detect anomalies, and generate real-time alerts for suspicious transactions. If a payment is deemed high-risk, the system can automatically decline the transaction, preventing financial losses.
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The RBI and major banks have also launched public awareness campaigns through SMS alerts, radio advertisements, and online promotions. Additionally, the Ministry of Home Affairs (MHA) has introduced key initiatives such as the National Cybercrime Reporting Portal (www.cybercrime.gov.in) for lodging complaints, the Cybercrime Helpline at ‘1930’ for immediate assistance, and the Digital Intelligence Platform (DIP) & ‘Chakshu’ Facility by the Department of Telecommunications (DoT) to report fraudulent calls, SMS, and WhatsApp messages.
All of the above information was given by Minister of State in the Ministry of Finance, Pankaj Chaudhary through a written reply in the Rajya Sabha on 11.03.2025.
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