Even as India cements its position as one of the world’s largest digital payments markets, cyber fraud continues to cast a long shadow over the rapidly expanding ecosystem.
The Reserve Bank of India (RBI) has revealed that an average of ₹1.40 is lost to fraud for every ₹1 lakh worth of digital transactions in the country, with one fraudulent incident recorded for every 1,01,242 transactions.
The figures were shared by RBI Executive Director P. Vasudevan during his keynote address at the SHIELD 2026 conference in Hyderabad on Thursday.
Vasudevan said India now ranks among global leaders in digital payment volumes, driven largely by UPI and other instant payment platforms that process millions of transactions every day. Despite this scale, he noted that the proportion of fraud remains relatively low when measured against total transaction volumes.
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However, he cautioned that rising cybercrime demands constant vigilance from banks, payment companies and customers alike.
“Fraudsters are continuously evolving their methods,” Vasudevan said, pointing to tactics such as phishing links, fake call centres and so-called “digital arrest” scams, where criminals impersonate law enforcement officials to intimidate victims into transferring money.
According to the RBI official, the central bank is working closely with lenders and fintech firms to strengthen safeguards across the payments ecosystem. Key measures include real-time transaction monitoring, identification of suspicious and mule accounts, tighter controls on high-risk transactions, and expanded customer awareness campaigns.
He stressed that technology alone cannot solve the problem.
“Cyber security is as much a behavioural issue as it is a technical one,” Vasudevan said, adding that users must remain alert to unsolicited calls, links and messages, as most fraud cases begin with social engineering at the customer level.
The remarks come at a time when concerns over digital fraud have also drawn the attention of the Supreme Court. Recently, the apex court pulled up banks and regulators over mounting online scams and disclosed that nearly ₹52,000 crore was siphoned off through cyber-enabled frauds between April 2021 and November 2025. The court described the trend as “digital dacoity” and urged the RBI and the Centre to urgently tighten banking safeguards.
RBI officials indicated that additional measures are in the pipeline, including risk-based alert systems, automatic flagging of unusually large transactions, and faster freezing of accounts once fraud is reported. Banks are also being encouraged to improve coordination with law enforcement agencies to track money trails more effectively.
Experts say India must now move towards a “security-by-design” approach, ensuring that every new digital payment feature is rolled out alongside robust protective mechanisms.
“With digital adoption accelerating across urban and rural areas, the challenge is to balance convenience with safety,” said a senior banking executive attending the conference. “First-time users are particularly vulnerable, making awareness and early-warning systems critical.”
Reiterating the RBI’s priorities, Vasudevan said the regulator remains committed to promoting digital innovation while ensuring the protection of consumer funds.
“Our objective is to build a payments ecosystem that is not only fast and inclusive, but also resilient and trustworthy,” he said.
As digital transactions continue to grow at an unprecedented pace, policymakers and industry players alike agree that sustained collaboration — between regulators, banks, fintech firms and consumers — will be key to staying ahead of increasingly sophisticated cybercriminals.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
