 "Over 63,000 digital payment frauds worth Rs 733 crore in 10 years: Govt")
The total number of digital payment frauds was 63,315 cases, as reported by commercial banks and all-India financial institutions under the specific category ‘Card / Internet and Digital Payments’ (for amounts involving Rs 1 lakh and above) between the financial year 2014–15 and December 2024 (covering a period of nearly ten years), according to government sources.
Government sources further said that the total extent of financial loss attributed specifically to these ‘digital payment frauds’ during this entire period amounted to Rs 733.26 crore.
On June 1, 2025, the Indian National Congress, in a post on X (formerly Twitter), alleged that the Narendra Modi government had failed to safeguard people’s hard-earned money and accused it of misrepresenting its record on digital banking security.
“Congress is indulging in misrepresentation of facts by conflating specific digital payment frauds with the much broader category of total banking frauds. Congress is misleading people by saying people have lost Rs 6.36 lakh crore due to digital fraud,” said a government source.
The INC post specifically highlights issues within digital banking payments at the outset.
“Total banking fraud is a comprehensive category encompassing various types of illicit activities, including issues related to advances, deposits, off-balance sheet items, foreign exchange transactions, cash handling, cheques, inter-branch accounts, and so on,” the source added.
The Reserve Bank of India (RBI) issued Master Directions on Digital Payment Security Controls in February 2021, mandating banks to implement common minimum standards of security controls for various payment channels such as internet banking, mobile banking, and card payments. To proactively identify illicit financial activities, the RBI has also launched an artificial intelligence-based tool named MuleHunter for the identification of money mule accounts, advising banks and financial institutions on its usage.
“The National Payments Corporation of India (NPCI) has implemented several security features to secure Unified Payments Interface (UPI) transactions, including device binding between the customer's mobile number and the device, two-factor authentication through PIN, setting daily transaction limits, and imposing curbs on certain use cases,” said the government sources.
However, under the public sector bank (PSB) reforms agenda, comprehensive and automated early warning systems (EWS) were instituted in PSBs, featuring approximately 80 EWS triggers and the use of third-party data for time-bound remedial actions to proactively detect stress and reduce slippage into non-performing assets (NPAs).
“The Fugitive Economic Offenders Act has been enacted to deter offenders from evading Indian law. PSBs have also been advised to obtain certified copies of passports of promoters, directors, and other authorised signatories for companies availing loan facilities over Rs 50 crore,” said the government source.
The source further said that the multiple measures have led to a significant decline in the amount involved in frauds in PSBs, from Rs 21,626 crore in FY20 to Rs 2,224 crore in FY24, and further to Rs 232 crore in FY25 (up to December 2024).
