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RBI announces digital payments intelligence platform to check online frauds

The Reserve Bank of India (RBI) has introduced a series of measures to enhance the safety and efficiency of digital payments and regulatory frameworks. These initiatives aim to promote innovation and inclusivity in the financial sector. Governor Das announced the establishment of a Digital Payments Intelligence Platform, leveraging advanced technologies to reduce payment fraud risks […]

The Reserve Bank of India (RBI) has introduced a series of measures to enhance the safety and efficiency of digital payments and regulatory frameworks. These initiatives aim to promote innovation and inclusivity in the financial sector.

Governor Das announced the establishment of a Digital Payments Intelligence Platform, leveraging advanced technologies to reduce payment fraud risks and improve transaction security.

According to the RBI's annual report, there has been a significant increase in reported financial fraud cases, rising by 166% year-on-year to 36,075 cases in the fiscal year 2023-24, compared to 13,564 cases in the previous year.

Despite the surge in fraud cases, the total amount involved in these incidents decreased by 46.7% year-on-year to ₹13,930 crore in the fiscal year 2023-24, down from ₹26,127 crore in the previous year.

The RBI has proposed revising the bulk deposit limit for Scheduled Commercial Banks (SCBs) and Small Finance Banks (SFBs) to ₹3 crore and above, aiming to enhance flexibility and align with market dynamics.

Additionally, the RBI plans to streamline export and import regulations under the Foreign Exchange Management Act (FEMA), 1999, to promote ease of doing business and facilitate international trade and investment.

To enhance digital payments, the RBI will expand the e-mandate framework to include recurring payments for services like Fastag and National Common Mobility Card (NCMC).

Furthermore, the RBI will integrate UPI Lite into the e-mandate framework, introducing an auto-replenishment feature for UPI Lite wallets to improve convenience for users.

The RBI has also launched the “HARBINGER 2024 - Innovation for Transformation” global hackathon, focusing on themes such as ‘Zero Financial Frauds' and ‘Being Divyang Friendly,' to solicit solutions for enhancing transaction security and inclusivity.

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Digital PaymentsMonetary policyrbiRBI Governor Shaktikanta DasTDG TheIndiaHerald