RBI And NPCI Review Additional Confirmation Step For UPI Fraud Control

The Reserve Bank of India has received a formal proposal from several major domestic banks suggesting an additional confirmation step for specific UPI payments to enhance digital security and curb fraud. The proposed mechanism would require users to provide an explicit extra confirmation, such as a mandatory 'Yes' prompt, prior to executing online transactions that display unusual or out-of-pattern behavior, particularly concerning peer-to-peer transfers.

This proposed safeguard aims to give everyday digital consumers a vital window to review suspicious payments before funds are debited from their accounts. However, the National Payments Corporation of India has expressed certain reservations regarding potential payment frictions that could slow down the historically seamless UPI transaction experience. Despite these operational concerns, discussions remain active as regulatory bodies search for effective solutions against digital payment fraud.

Financial authorities and payment processors are expected to evaluate technical implementation frameworks before the end of Q3 2026. Industry stakeholders must assess whether introducing friction points compromises transaction speed or successfully prevents social engineering scams. Payment service providers will need to adapt their applications if the additional confirmation protocol becomes mandatory across networks.