In response to a significant increase in digital payment fraud, the Reserve Bank of India (RBI) has unveiled plans to establish a dedicated Digital Payments Intelligence Platform.
The platform aims to provide network-level intelligence and real-time data sharing across India’s digital payments ecosystem to combat fraudulent activities effectively.
Governor Shaktikanta Das announced the initiative during the Monetary Policy Committee (MPC) meeting, highlighting the pressing need for a comprehensive system-wide approach to prevent and mitigate digital payment fraud. A committee, chaired by AP Hota, former MD & CEO of NPCI, has been formed to oversee the setup of the platform.
According to the RBI’s annual report released on May 30, financial fraud cases reported by banks surged by 166% year-on-year in FY 2023-24, reaching 36,075 cases. However, despite the rise in the number of fraud cases, the total amount involved decreased by 46.7% year-on-year, totaling Rs 13,930 crore.
In addition to the Digital Payments Intelligence Platform, the RBI has proposed revisions to the bulk deposit limits for Scheduled Commercial Banks (SCBs) and Small Finance Banks (SFBs) to enhance flexibility and align with evolving market dynamics. The proposed revisions aim to streamline regulations under the Foreign Exchange Management Act (FEMA), 1999, and expand the e-mandate framework to include recurring payments for Fastag and National Common Mobility Card (NCMC) services, among others.
Furthermore, RBI has announced the launch of its third edition of the global hackathon, “HARBINGER 2024 – Innovation for Transformation,” focusing on themes such as ‘Zero Financial Frauds’ and ‘Being Divyang Friendly.’
These initiatives underscore RBI’s commitment to fostering innovation, enhancing the safety and security of digital transactions, and promoting financial inclusion in India’s rapidly evolving digital payments landscape.
