The National Payments Corporation of India (NPCI) is constantly trying to stop payment fraud. For this, it is continuously strengthening the security features related to UPI (Unified Payments Interface).
Now NPCI can make some necessary changes in the rules related to UPI to stop payment fraud. In this, a decision can be taken to close the ‘pull transaction’ feature. NPCI is talking to banks about this. After the closure of this feature, there will be a reduction in the cases of cyber fraud related to UPI.
So, let’s talk today in important news about what is pull transaction? Also, we will know that-
What will the users get from the closure of this feature?
Why does NPCI want to end it?
Expert: Ishan Sinha, Cyber Expert, New Delhi
Question- What is ‘pull transaction’?
Answer- There are two ways of transaction in UPI. First is push transaction and pull transaction.
When a merchant sends a request for payment to a customer in exchange for any goods or service, it is called a ‘pull transaction’. In this transaction, the amount of payment is pre-determined. The customer just has to enter his UPI PIN.
Let us make it clear here that companies providing services like online shop, shop or restaurant, electricity, mobile recharge are called merchants because they take payment from customers.
On the other hand, when the customer himself sends money by scanning the QR code or by entering the mobile number, it is called a ‘push transaction’. In this, the customer himself enters the amount of payment.
Question- What will be the benefit to the users with the closure of ‘Pull Transaction’ feature?
Answer- NPCI is currently talking to banks about shutting it down. According to media reports, this conversation is still in the first phase. If pull transactions are discontinued in the future, customers may get some potential benefits. Understand this from the graphic given below-
Question- Will this affect online subscriptions and bill payments?
Answer- Closing ‘pull transactions’ will affect auto-debit based subscriptions and bill payments. Currently, many people set electricity, mobile recharge, gas and other bills on auto-debit. This automatically deducts money from their bank account every month. After this feature is discontinued, the user will have to make payment manually every month.
Question- How will the services for which people used auto-debit work now?
Answer- After the closure of UPI’s ‘pull transaction’ feature, some changes can be seen in auto-debit. Auto-debit was mostly used for electricity bills, mobile recharges, OTT subscriptions, loan EMIs, insurance premiums, SIP investments, mutual funds. Now new options will have to be adopted for these services. Now the customer will have to approve the payment through UPI notification or SMS. Auto-debit option will be available in EMI payment apps or banking apps, but approval will be required every time.
Question- Will this have any effect on the transaction between merchant and customers?
Answer- Cyber expert Ishan Sinha says that many merchants depend on UPI’s auto-debit model to charge membership charges, EMI payments and monthly service charges from customers. After the closure of pull transactions, they will have to get payment approval from the customer every time, which may affect the transaction. Also, now they will have to manually send reminders to customers to take payment.
Question- Which new payment systems can be developed in place of pull transactions?
Answer- The closure of UPI ‘pull transaction’ feature will increase payment security, but merchants and customers will have to adopt new systems. For this, companies will have to find new options.
Question- Will NPCI introduce any new feature which is safe for auto-debit?
Answer- There are some other features for safe auto-debit. Chief among these is the e-KYC Setu system, which helps to verify the identity of customers safely and effectively. There are many advantages of the e-KYC Setu system. Such as-
This system uses Aadhaar-based e-KYC authentication, so that the identity of customers cannot be verified without sharing the Aadhaar number.
Due to digital verification, there is no need for paperwork.
Question- Now how can people ensure that money is not deducted from their account without permission?
Answer- After the closure of the UPI ‘Pull Transaction’ feature, customers will also need to ensure that money is not deducted from their bank account without permission. For this, being vigilant yourself is the best security measure. If customers use UPI AutoPay, bank alerts, limit settings and e-mandate management properly, money will not be deducted without permission.
Let us now understand these points.
- Turn on SMS and email alerts in the bank and UPI app.
- If there is any unauthorized transaction, inform the bank immediately.
- Set UPI transaction limit in the bank and UPI app (PhonePe, GooglePay, Paytm).
- Contact the bank and ensure that OTP or UPI PIN is required for large amounts.
- Review bank statements and UPI transactions at least once a month.
- Do not click on payment links from unknown numbers or emails. No bank or NPCI asks you for OTP or UPI PIN.
- Download UPI app from Google Play Store or Apple Play Store only.
- Get information from your bank’s official website or NPCI portal only.
- Turn off unwanted auto-debit service by going to Google Pay, PhonePe and Paytm or bank’s net banking.
- Go to the UPI app and see which accounts are linked and remove unnecessary accounts.
Read Also:
- UPI Will Not Work On Inactive Mobile Numbers From April 1: NPCI’s Decision To Prevent Cyber Fraud, Pull Transaction Feature Will Also Be Closed
- The Role Of Money In The Financial System
- Bitcoin Money
- Historical background Of Money
- Introduction: The Nature Of Money
- Demerits / Disadvantages Of Money
- Money: Concept, Functions and Role
- 5 Functions Of Money
- What Is Money
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