UPI Transaction Data No Longer Private; Centre Moves to Collect Information

The central government is planning to access UPI transaction data under the pretext of collecting information on financial transactions. The Centre claims the move is aimed at collecting details of transactions taking place at schools, colleges, hospitals and clinics across the country. The proposal has been put forward by the Ministry of Statistics and Programme Implementation.

So far, the Centre has assessed how consumers spend money through UPI. If the new proposal is implemented, the central government will have precise monthly data on financial transactions in the education and healthcare sectors.

UPI transactions have Merchant Category Codes that classify each merchant. By examining these codes, the ministry will be able to distinguish the fee payments received by private schools, universities, professional colleges and vocational courses.

The Centre believes the proposal could help bridge gaps in the services sector. However, concerns are being raised over the move to monitor financial transactions. Monitoring individual payment details amounts to an intrusion into privacy. It could also enable patients' treatment-related information and students' private information to reach the government or other agencies.

Through the move, the central government is seeking to intervene even in people's daily transactions in the name of collecting financial data.