Why banks are using IVR checks for high-value UPI payments
One of the most common safety steps used today is IVR verification, where banks confirm a transaction through an automated phone call before money is transferred.
India’s UPI (United Interface System) system has become one of the busiest digital payment networks in the world. From small tea payments to large business transfers, UPI is now part of daily life. But with this massive growth, banks are also stepping up security, especially for high-value transactions.
One of the most common safety steps used today is IVR (Interactive Voice Response) verification, where banks confirm a transaction through an automated phone call before money is transferred.
UPI GROWTH BRINGS BOTH SCALE AND RISK
UPI reached record levels in December 2025, underlining how strong India’s digital payments ecosystem has become. At the same time, higher volumes also mean higher exposure to fraud.
Kanishk Agrawal, Chief Technology Officer at Judge Group India, highlighted the scale of UPI usage and the need to protect trust.
“In December 2025, UPI achieved an all-time high, with 21.6 billion transactions worth approximately Rs 30 trillion,” he said.
“As UPI grows, so does the need for banks to protect the level of trust associated with UPI from fraud by continuing to use IVR systems to verify the authenticity of high-value transactions.”
WHAT THE NEW NPCI FRAMEWORK ALLOWS
Agrawal explained that updated NPCI (National Payments Corportaion of India) rules, effective from September 15, 2025, allow higher limits for certain transactions. Here, it must be mentioned that UPI is developed and managed by the NPCI.
“UPI transactions can go up to Rs 5 lakh per transaction and Rs 10 lakh per day for verified types, most likely merchants. For P2P (Peer-to- Peer) transfers, the limit remains Rs 1 lakh,” he said.
“Banks decide these limits based on RBI guidelines, internal risk models, and the balance between convenience and security.”
IVR IS A SAFETY LAYER, NOT AN OBSTACLE
From a fintech viewpoint, IVR checks are essential for protecting users. Rohit Mahajan, Founder and Managing Partner of plutos ONE, said IVR plays a key role in preventing modern digital fraud.
“IVR verification for high-value transactions is not friction—it is a necessary risk-control layer,” he said.
“With the rise of phishing, SIM-swap attacks, and social engineering, high-value transactions naturally need extra authentication.”
Mahajan added that IVR acts as a real-time intent check before funds move, helping banks confirm that a transaction is genuinely authorised.
HOW BANKS DECIDE WHEN IVR IS TRIGGERED
According to Mahajan, IVR triggers are data-driven.
“They are based on customer risk profiles, past behaviour, fraud trends, and factors like account age, ticket size, transaction speed, merchant category, and device patterns,” he explained.
LOCATION AND BEHAVIOUR MATTER TOO
Ankush Sabharwal, Founder and CEO of CoRover, said banks also watch for unusual behaviour beyond transaction value.
“If a transaction happens in a different region, it can trigger IVR,” he said.
“For example, a transaction from the US when most activity is in India, or a sudden Rs 1–1.5 lakh payment when normal spending is Rs 5,000–Rs 10,000.”
Sabharwal added that flagged merchants, new merchant categories, and higher-risk online payments can also prompt checks. Automated IVR systems, backed by AI (artificial intelligence) tools, help banks stop fraud in real time.
As digital payments continue to grow, experts agree that combining IVR with smarter technology is key to keeping UPI fast, safe, and trusted.
India’s UPI (United Interface System) system has become one of the busiest digital payment networks in the world. From small tea payments to large business transfers, UPI is now part of daily life. But with this massive growth, banks are also stepping up security, especially for high-value transactions.
One of the most common safety steps used today is IVR (Interactive Voice Response) verification, where banks confirm a transaction through an automated phone call before money is transferred.
UPI GROWTH BRINGS BOTH SCALE AND RISK
UPI reached record levels in December 2025, underlining how strong India’s digital payments ecosystem has become. At the same time, higher volumes also mean higher exposure to fraud.
Kanishk Agrawal, Chief Technology Officer at Judge Group India, highlighted the scale of UPI usage and the need to protect trust.
“In December 2025, UPI achieved an all-time high, with 21.6 billion transactions worth approximately Rs 30 trillion,” he said.
“As UPI grows, so does the need for banks to protect the level of trust associated with UPI from fraud by continuing to use IVR systems to verify the authenticity of high-value transactions.”
WHAT THE NEW NPCI FRAMEWORK ALLOWS
Agrawal explained that updated NPCI (National Payments Corportaion of India) rules, effective from September 15, 2025, allow higher limits for certain transactions. Here, it must be mentioned that UPI is developed and managed by the NPCI.
“UPI transactions can go up to Rs 5 lakh per transaction and Rs 10 lakh per day for verified types, most likely merchants. For P2P (Peer-to- Peer) transfers, the limit remains Rs 1 lakh,” he said.
“Banks decide these limits based on RBI guidelines, internal risk models, and the balance between convenience and security.”
IVR IS A SAFETY LAYER, NOT AN OBSTACLE
From a fintech viewpoint, IVR checks are essential for protecting users. Rohit Mahajan, Founder and Managing Partner of plutos ONE, said IVR plays a key role in preventing modern digital fraud.
“IVR verification for high-value transactions is not friction—it is a necessary risk-control layer,” he said.
“With the rise of phishing, SIM-swap attacks, and social engineering, high-value transactions naturally need extra authentication.”
Mahajan added that IVR acts as a real-time intent check before funds move, helping banks confirm that a transaction is genuinely authorised.
HOW BANKS DECIDE WHEN IVR IS TRIGGERED
According to Mahajan, IVR triggers are data-driven.
“They are based on customer risk profiles, past behaviour, fraud trends, and factors like account age, ticket size, transaction speed, merchant category, and device patterns,” he explained.
LOCATION AND BEHAVIOUR MATTER TOO
Ankush Sabharwal, Founder and CEO of CoRover, said banks also watch for unusual behaviour beyond transaction value.
“If a transaction happens in a different region, it can trigger IVR,” he said.
“For example, a transaction from the US when most activity is in India, or a sudden Rs 1–1.5 lakh payment when normal spending is Rs 5,000–Rs 10,000.”
Sabharwal added that flagged merchants, new merchant categories, and higher-risk online payments can also prompt checks. Automated IVR systems, backed by AI (artificial intelligence) tools, help banks stop fraud in real time.
As digital payments continue to grow, experts agree that combining IVR with smarter technology is key to keeping UPI fast, safe, and trusted.