The National Payments Corporation of India (NPCI) is in discussions with banks to phase out the UPI Pull Transaction feature. The move comes as a response to rising digital frauds, most of which occur through this transaction method. But what exactly is a UPI Pull Transaction, and how will its removal impact you? Let’s find out.
Understanding UPI Pull Transactions
A UPI Pull Transaction occurs when a merchant or service provider requests payment from a customer. The amount to be paid is pre-filled in the UPI app, and the user only needs to enter their UPI PIN to authorize the payment.
In contrast, a Push Transaction is when a customer initiates the payment themselves by entering the required amount and transferring it to the recipient via QR codes, UPI IDs, or mobile numbers.
Due to the ease of pull transactions, fraudsters often exploit this feature by sending fake payment requests, tricking users into authorizing unintended transactions.
Why is NPCI Considering Removing UPI Pull Transactions?
UPI-based fraud has become a growing concern, with fraudsters using deceptive techniques to trick users into approving unauthorized transactions. The majority of these scams take place through pull transactions, making it easier for cybercriminals to steal money.
By eliminating this feature, NPCI aims to:
✅ Reduce fraudulent transactions
✅ Enhance user security
✅ Make UPI payments safer and more reliable
However, not everyone is in favor of this decision. Some banks argue that removing pull transactions could impact legitimate transactions and affect operational efficiency.
No Final Decision Yet
While discussions are ongoing, NPCI has not yet taken a final decision on whether to completely phase out pull transactions. Since this feature is widely used by merchants, its removal may cause inconvenience. The talks are still in the early stages, and NPCI is evaluating all possible outcomes before making a final call.
UPI Transactions Are Growing Rapidly
The debate over pull transactions comes at a time when UPI is breaking records in digital payments. In February 2025 alone, India witnessed over 16 billion UPI transactions, with a total transaction value exceeding ₹21 lakh crore.
Year-on-year, UPI transactions have surged by 46%, reaching 172.2 billion in 2024, compared to 117.7 billion in 2023. This exponential growth highlights India’s shift toward a cashless economy.
RBI’s Concern Over Digital Frauds
The Reserve Bank of India (RBI) has also raised concerns over the increasing number of digital fraud cases and has emphasized the need for greater public awareness.
📌 RBI data reveals:
🔹 Between April and June 2024, RBI Ombudsman received 14,401 complaints related to digital payments and loans.
🔹 From July to September, 12,744 complaints were filed.
🔹 The December 2024 Financial Stability Report stated that digital payment and loan-related issues accounted for over 70% of total complaints in the first half of FY 2024-25.
How Will It Impact You?
If NPCI removes UPI Pull Transactions, it could bring both benefits and challenges for users:
✔️ Pros:
🔹 Lower chances of fraud as users won’t receive unauthorized payment requests.
🔹 Improved security in digital transactions.
🔹 More control over outgoing payments.
❌ Cons:
🔹 Some merchants may find it difficult to collect payments.
🔹 Subscription-based services that rely on auto-payments via pull transactions may be affected.
🔹 Users will have to manually enter payment amounts in certain cases.
Final Thoughts
While pull transactions have made payments convenient, they have also been misused by fraudsters, leading to increasing financial scams. NPCI’s move to eliminate this feature is primarily aimed at enhancing security. However, the final decision is still pending, and experts are weighing both the benefits and drawbacks of this change.
For now, it’s crucial to stay alert, verify every payment request, and never share UPI PINs or OTPs with anyone. Whether or not pull transactions are discontinued, safe digital banking practices remain your best defense against fraud.
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