• Source:JND
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UPI Transactions Blocked: The Indian government is stepping up efforts to curb digital financial fraud with a new tool that will block UPI transactions to certain mobile numbers flagged as risky. On Wednesday, the Department of Telecommunications (DoT) unveiled the Financial Fraud Risk Indicator (FRI), a system designed to identify and prevent scams before they happen.

This new mechanism will scan mobile numbers and classify them based on their risk level — Medium, High, or Very High — using data pulled from sources like the National Cybercrime Reporting Portal (NCRP), the DoT’s own Chakshu platform, and intelligence provided by banks and financial companies. The ultimate goal: to stop fraud in its tracks before money changes hands.

The FRI is part of the DoT’s larger initiative known as the Digital Intelligence Platform (DIP), which aims to strengthen the digital environment surrounding financial transactions. It’s specifically built to help UPI service providers — including Paytm, PhonePe, and Google Pay — along with banks and NBFCs, screen transactions and protect users. Together, these UPI platforms account for over 90% of India’s transaction volume.

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Here’s how it works: if a UPI user tries to send money to a mobile number categorised as “Very High Risk”, the transaction will be automatically blocked and a warning will appear. For “Medium Risk” numbers, the app will alert the user and ask for additional confirmation before proceeding. In some cases, transactions may also be delayed as an added precaution.

The DoT explains that numbers are flagged when they are linked to cybercrime cases, have failed verification processes, or have breached telecom regulations. These insights are shared with stakeholders in near real-time so they can act quickly.

“The Digital Intelligence Unit (DIU) of DoT regularly shares the list of Mobile Numbers that were disconnected (Mobile Number Revocation List - MNRL) with stakeholders along with the reasons for disconnections viz. found involved in cyber-crime, failed re-verification, exceeding prescribed limits. These numbers are also usually used for financial frauds.,” states the official blog post.

This move comes amid a surge in digital frauds across India, where scammers often exploit fresh SIM cards to carry out short-term schemes, vanishing before they can be caught. The DIU’s MNRL is also a key part of this effort, offering banks and financial firms a way to stay alert to numbers previously linked with fraudulent activity.

By integrating fraud intelligence into the very foundation of digital payments, the government hopes to cut off scammers before they strike — and give users a stronger layer of protection in the process.

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