UPI reliability and fraud risks
A recent explainer flagged a reported RBI plan for a possible one-hour pause on UPI payments, highlighting payment availability as a customer-facing issue for time-sensitive buying windows (youtube.com). Separately, reporting shows users resist fees and merchants are facing real losses from fake payment confirmations, underscoring both the political sensitivity around charging UPI and the operational risk of screenshot‑based fraud (fortuneindia.com) (timesofindia.indiatimes.com).
India’s most-used payments rail is under pressure on three fronts at once: uptime, fraud checks, and the politics of keeping it free. (rbi.org.in) (fortuneindia.com) Unified Payments Interface, or UPI, handled a record 22.64 billion transactions worth about ₹29.53 lakh crore in March 2026, according to National Payments Corporation of India data cited by multiple outlets. That scale means even short disruptions can hit everyday buying windows for fuel, food, travel, and retail checkouts. (npci.org.in) (msn.com) The Reserve Bank of India has not published any April 2026 circular announcing a routine one-hour daily pause for UPI payments. Its public notifications through April 10, 2026 show no such measure, even as the central bank’s payments reports keep stressing resilience, cyber controls, and customer protection. (rbi.org.in 1) (rbi.org.in 2) That matters because UPI works like a real-time switchboard between banks: the payment is supposed to move and confirm in seconds, not after a merchant closes a sale. The Reserve Bank’s June 2025 Payment Systems Report says payment regulation is meant to ensure safety, security, efficiency, and effectiveness while protecting consumers. (rbi.org.in) The second pressure point is money. Fortune India reported that 10.75% of users said they may stop using UPI if fees are introduced, a warning for banks and fintech firms that have argued the zero-fee model is financially strained. (fortuneindia.com) The government has been paying incentives instead of allowing merchant discount rates on some low-value merchant payments. A Press Information Bureau release said the 2024-25 scheme set aside ₹1,500 crore for low-value BHIM-UPI person-to-merchant transactions up to ₹2,000 for small merchants. (pib.gov.in) The third pressure point is old-fashioned fraud wrapped in a modern interface: fake confirmations. In Pune, The Times of India reported on April 12, 2026 that a Kondhwa mobile-store owner lost ₹1.35 lakh after handing over a smartphone to a buyer who claimed to have paid by UPI. (timesofindia.indiatimes.com) The report said the seller saw a credit message, but the money never reached his account. Cyber lawyer Nadeem Gadiya told the paper that a ₹1.35 lakh transfer in one UPI transaction was itself a red flag and said crooks use fake UPI apps and spoofed text messages to mimic successful payments. (timesofindia.indiatimes.com) Police in Pune have also reported broader misuse of counterfeit UPI apps beyond one handset sale. In November 2025, The Times of India reported two men were arrested after allegedly using a fake payment app at fuel stations and about 50 restaurants and bars. (timesofindia.indiatimes.com) The Reserve Bank’s 2024-25 annual report said the year saw greater emphasis on cyber resilience, payment security controls, fraud prevention, and consumer awareness for a “safe and seamless” user experience. For merchants, the practical rule is simpler than the policy debate: a screenshot or text alert is not settlement unless the money appears in the bank or UPI app. (rbi.org.in) (timesofindia.indiatimes.com)
