The National Payments Corporation of India (NPCI) is increasingly utilising artificial intelligence (AI) and machine learning (ML) to enhance security in digital transactions, especially as Unified Payments Interface (UPI) usage continues to surge.
NPCI Chief Risk Officer Viswanath Krishnamurthy revealed that a pilot project is underway in collaboration with both public and private sector banks to integrate AI-driven measures for improving customer safety.
Founded in 2008 by the Reserve Bank of India (RBI) and the Indian Banks Association (IBA), NPCI oversees the country’s retail payment systems.
Sharing key statistics, Krishnamurthy stated that UPI transactions hit 18.30 billion in March 2025, reflecting a 36% year-on-year growth. The total transaction value reached approximately ₹24 lakh crore, marking a 25% rise. Over the last five years, UPI has expanded rapidly, with a compound annual growth rate of 74%, making it the most widely used retail payment system. More than 460 million unique users have adopted UPI for digital transactions.
With digital payments growing even in smaller towns, NPCI has increased its budget allocation for UPI awareness campaigns. Recently, it launched a multilingual television commercial featuring Bollywood actor Pankaj Tripathi, who serves as its brand ambassador.
Addressing concerns about fraud, Krishnamurthy noted that nearly all scams occur due to user actions driven by greed, fear, or lack of awareness. He explained that 85% of fraud victims fall for scams due to greed, 10% due to fear, and 5% due to ignorance. Interestingly, new UPI users are rarely affected, but those with prior experience often fall for scams after multiple transactions. Even high-ranking corporate executives, including CFOs and technology heads, have been deceived.
To counter fraud, NPCI is working on a feature that will alert users before they transfer funds to accounts flagged as suspicious by other customers.
In addition to strengthening domestic security, NPCI is expanding its international presence, with its payment system already operational in seven countries. Several other nations have also expressed interest in implementing similar UPI-based payment systems.
Krishnamurthy emphasized that staying informed and cautious is key to securing digital transactions while benefiting from the convenience of UPI.
