UPI freeze mechanism must come from RBI, NPCI: SBI’s Ashwini Kumar Tewari

State Bank of India Managing Director (Corporate Banking and Subsidiaries) Ashwini Kumar Tewari on Wednesday said that banks are actively discussing mechanisms to help customers retrieve money lost to fraud or accidental transactions.

However, he emphasised that any formal framework will have to come from the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI).

Speaking at the 10th annual IFTA–India Fintech Forum in Mumbai, Tewari addressed recent suggestions that UPI payments could be temporarily paused before settlement to allow time to reverse fraudulent transfers. He acknowledged that the idea has been floated by “a few quarters” but clarified that no decision has been taken yet.

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"Nothing has moved ahead so far. This falls under the domain of RBI and NPCI, and they will have to decide it. No single bank can decide upon it, whether a UPI payment can be freezed for 30 minutes (or so and so). Deliberations are underway, with suggestions from many. Nothing has been finalised yet," he said.

AI adoption accelerates across India’s banking sector

Tewari also highlighted how banks are rapidly integrating artificial intelligence into multiple processes—from personalised product recommendations to fraud detection.

"Banking sector is using AI, largely in three to four areas, serving customers in choosing products—we can fine-tune, in other words, hyper-personalisation, protection from fraud risks and for cyber security, better marketing, and AI chatbots for customers and staff. AI is being used in all areas. AI can process large data and give solutions quickly, which otherwise may take time to do it manually," he said.

He added that while AI offers immense benefits, banks must remain vigilant about emerging risks.

"Every technology has its own upside and downside, and as banks, we need to make our customers more aware, and stay ahead of the curve in terms of technology models vis-a-vis fraudsters, so that misuse of AI can be stopped," he noted.

Tewari’s comments come at a time when digital payment volumes continue to surge and regulators are examining new protective measures to strengthen customer safety in India’s fast-expanding fintech ecosystem.