ETtech Explainer: How the rise in online payment frauds pushed NPCI to kill ‘pull' transactions
What are push and pull UPI transactions?
A push UPI transaction is when the user or payer sends money to someone else through apps such as Google Pay, PhonePe, Paytm, or BHIM by scanning a QR code, entering their UPI ID or their phone number. The person then chooses an account, adds the amount, and confirms it with a UPI PIN. The transaction is initiated and authorised only by the sender.A pull transaction, which goes by 'collect' or 'request money' on some apps, is initiated by the recipient, who sends a payment request. The payer receives a notification asking for approval of the payment. This feature has sometimes led to confusion or enabled manipulation.
Why is NPCI killing this feature?
NPCI has sent a communication to banks and fintech firms that it is removing the feature. It had capped the pull method at Rs 2,000 per transaction in 2019, to reduce the risk of unauthorised transactions.The payments body said it aims to curb the growing threat of UPI-related scams. Most frauds are linked to the pull method, where unsuspecting users approve unauthorised payment requests, resulting in financial losses. Fraudsters frequently exploit the feature by sending deceptive requests.Other UPI frauds include QR code scams, phishing via messaging and social media apps and fraudsters posing as bank or support representatives.
What do the numbers show?
According to Reserve Bank of India data, frauds related to payment cards and internet banking more than doubled to 29,000 in FY25, involving about Rs 1,457 crore. There were 13,516 such attacks, involving Rs 520 crore, in the previous financial year.Peer-to-peer (P2P) transactions accounted for 7.08 billion transactions worth Rs 17.74 lakh crore, up from about 5 billion a year ago. There are ongoing discussions about the cost of processing UPI transactions. Some banks have begun levying charges on certain UPI payments after the government reduced incentives for processing small-value merchant transactions. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Regulatory gray area makes investing in LVMH, BP tough For Indian retail
How IDBI banker landed plush Delhi properties in Amtek's INR33k crore skimming
As 50% US tariff looms, 6 key steps that can safeguard Indian economy
Jane Street blow pushes Indian quants to ancient Greek idea to thrive
Stock Radar: Astra Microwave showing signs of bottoming out after 16% fall from highs; time to buy?
F&O Radar | Deploy Broken Wing in Paytm to play stock's bullish outlook
These 9 banking stocks can give more than 28% returns in 1 year, according to analysts
Why 2025 Could Be The Astrological Turning Point We've Been Waiting For
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
16 minutes ago
- Hans India
BlueStone Jewellery IPO Allotment Status 2025
BlueStone Jewellery, a company that sells gems and jewellery, will announce today whether investors have got shares in its Rs 1,540.65 crore IPO. Investors can check their application status online on three websites: BSE, NSE, and Kfin Technologies. How to Check Your IPO Allotment Status On Kfin Technologies: Visit Choose 'BlueStone Jewellery & Lifestyle Ltd' Enter your Application Number, Demat Account, or PAN Number Click Submit On BSE: Go to Select Equity for Issue Type Pick 'BlueStone Jewellery & Lifestyle Ltd' Enter your Application Number or PAN Number Click Search On NSE: Visit Select Equity & SME IPO Bid Details Choose the symbol 'BLUESTONE' Enter your Application Number and PAN Number Click Submit Latest Grey Market Premium (GMP) and Listing Details The latest GMP is about Rs 2, which means the shares may list with a small premium (less than 1%) over the IPO price. The IPO price band was Rs 492 to Rs 517. The estimated listing price is Rs 519 (IPO cap price plus GMP). This means investors might see a gain of around 0.39% when shares start trading. Important Dates Shares will be added to investor accounts on August 18, 2025 (markets are closed August 15–17). Refunds for investors who didn't get shares will also start on August 18. The IPO is expected to list on the stock exchanges on August 19, 2025.
Hindustan Times
16 minutes ago
- Hindustan Times
‘The best city in India': North Indian man lauds Bengaluru after moving from Delhi. Here's why
A young professional who relocated to Bengaluru in 2022 has taken to Reddit to call the city the 'best in India,' sparking a wave of agreement online. In a detailed post, the man - originally from North India - reflected on how his move from Delhi to Bengaluru completely reshaped his views on work, lifestyle and personal growth. Bengaluru has been hailed as "the best city in India" on social media by a north Indian man who shifted after being in Delhi for three years. (Picture for representational purposes only)(Pexels) READ | Rapido steps into food delivery with 'Ownly' app in Bengaluru, a no-commission challenger to Swiggy, Zomato: Report The Redditor, who spent three years in Delhi before shifting south, admitted that he expected more of the same - tight deadlines, pressure-packed weekdays and the typical weekend escapes to bars or clubs. But Bengaluru had other plans. 'When I first came here for my job, life felt like the same rat race - work 5 days, kill yourself with deadlines, then hit some bar or club on weekends to 'prove' you're chill,' he wrote. READ | Heavy rain in Bengaluru kills three, damages over 800 roads and 1000 homes: Report However, a comment from his local friend over how only few native Kannadigas frequented such spots changed his perception and 'Three years later, I've completely left that scene behind,' he wrote. What also impressed him was Karnataka's approach to governance. From entertainment and employment initiatives to affordable movie tickets, he noted that there's a visible effort to support young people. 'In most other states, the government barely notices you exist,' he wrote. The man also compared the work cultures in Delhi and Bengaluru, writing that bosses are micromanagement champions in Delhi-NCR. 'In Bengaluru? I spend 6 months a year working from home, even though the official policy is '3 days a week in office.' My skills and results matter more than my physical presence,' he said. READ | Bengaluru to go dry for two days; Alcohol sales banned on August 15, 16: Report He also commented on the facilities the city has to offer. From infrastructure to opportunity, he feels Bengaluru offers a rare mix. 'Honestly, you won't find this combination in many other cities in India,' he shared. 'Came for the job, stayed for the growth, respect, and lifestyle upgrade. Bengaluru just hits different,' he concluded. How social media reacted His post quickly gained traction, with many users echoing his sentiment. 'Good weather, jobs, great food, bars, clubs, malls, metro connectivity. Most of the people at the clubs are North Indians,' a commenter said. 'One thing you missed is how nice the people are here. In north Indian cities you find lot of thugs. Also the general treatment of service class people like maids, cook and driver are better,' another user wrote.
Time of India
16 minutes ago
- Time of India
Trump's 50% tariff threatens India's manufacturing ambitions
Bloomberg Live Events India's largest shoemaker Farida Group had already staked out the land — a 150-acre plot in southern Tamil Nadu — for a sprawling new export plant. Then came a blow from Washington: President Donald Trump announced he was doubling tariffs on Indian exports to 50%.For Farida, which supplies brands like Cole Haan and Clarks and depends on the US for about 60% of its business, the impact was immediate. New orders stopped. The 10 billion rupee ($114 million) project froze.'With 25% tariffs, you can still work, you can give some discount, negotiate with the buyer and make some adjustments in your profits,' Rafeeque Ahmed, the company's chairman, said in an interview. 'At 50%, you don't have anything.'Farida is hardly alone. Trump's move would give India the highest tariff rate in Asia, threatening a manufacturing sector that Prime Minister Narendra Modi has spent a decade trying to build to take on the likes of China. The 'Make in India' campaign was supposed to lift manufacturing to 25% of the economy. Last year, it stood at just 13% — lower than the 16% in 2015, according to World Bank last few years did offer glimmers of the future Modi had envisioned. Apple Inc. scaled up iPhone assembly in India, making the country the second-largest smartphone producer after China. Pharmaceuticals and green tech have also gained ground. The US — whose policies and actions accelerated companies' adoption of a 'China Plus One' strategy to diversify supply chains — is now India's biggest export market and one of its top sources of foreign progress is suddenly vulnerable. While the tariff hike spares smartphones and pharmaceuticals for now, it puts the rest of India's $87 billion in US-bound exports on the line.'Forget China Plus One right now. Companies are thinking India Plus One,' Ahmed said. 'They are making plans to move out of India.'India's Ministry of Commerce and Industry didn't immediately respond to a request for says the tariff hike is punishment for India's purchase of discounted oil from Russia, which he argues helps fund President Vladimir Putin's war on Ukraine. But India was the only major economy to be hit with such 'secondary tariffs,' even though China is the largest overall buyer of Moscow's the 50% rate holds, Bloomberg Economics estimates US-bound exports from India could fall by 60% and put nearly 1% of gross domestic product at risk. Without exemptions for pharmaceuticals and electronics, the decline could reach 80%. Even the earlier 25% rate — already higher than in Vietnam, Malaysia or Bangladesh, was enough to threaten a 30% drop in exports. For comparison, Chinese goods face about a 30% US tariff.'In addition to the economic challenge, politically it's difficult for Prime Minister Modi that India now pays a higher blanket rate than China,' said Alexander Slater, head of the India practice at consulting firm is pressing on other fronts as well. Beijing wants to limit tech transfers and equipment exports to India and Southeast Asia, aiming to deter companies from relocating production, Bloomberg previously reported. China's rare earth curbs also hit Indian automakers earlier this the same time, Trump's tariffs have opened the door for closer India-China ties. Direct flights may resume as soon as next month, and Beijing has eased restrictions on urea exports to the factory floor, anxiety over the US tariff is palpable. Ajay Sahai, chief executive officer of the Federation of Indian Export Organisations, said exporters could see demand fall 20% in the short term. The timing couldn't be worse: summer 2026 orders are being placed right now, but with tariffs sitting at 50%, buyers are balking.'I've been getting 80 to 90 calls every day concerning these issues from exporters seeking solutions and ways out,' he said. 'It's difficult to do business in such a tariff environment.'Some factories are slashing prices to hold on to customers. The only way to retain buyers is by giving huge discounts, said Sudhir Sekhri, managing director at apparel maker Trend Setters Group. Spring and summer orders account for roughly 65% of his firm's Mumbai, Sharad Kumar Saraf, managing director of Technocraft Group, which produces scaffolding, textiles and other goods, is running the numbers to reduce costs for buyers. About a third of its sales are headed for the US. 'Additional tariffs is unwarranted and uncalled for and will impact our trade severely,' he said.
