RBI’s Digital Payments Intelligence Platform Aims to Curb Online Frauds

In a significant move to enhance the safety and security of digital payments and strengthen regulatory frameworks, the Reserve Bank of India (RBI) has unveiled a series of proposals to foster innovation and efficiency in the financial ecosystem. Governor Shaktikanta Das announced these initiatives, highlighting the central bank’s commitment to fortifying India’s digital infrastructure.

One key announcement made by Governor Das is the establishment of a Digital Payments Intelligence Platform. This platform, leveraging advanced technologies, aims to mitigate payment fraud risks and enhance the safety of digital transactions. The RBI’s annual report revealed a substantial increase in financial fraud cases reported by banks, reaching 36,075 cases in the financial year 2023-24, a significant surge from the previous fiscal year. Despite the rise in fraud cases, the total amount associated with bank frauds decreased by 46.7% to Rs 13,930 crore.

Additionally, the RBI proposed revising the bulk deposit limits for Scheduled Commercial Banks (SCBs), Small Finance Banks (SFBs), and Local Area Banks (LABs) to align with market dynamics. Furthermore, the RBI aims to streamline export and import regulations under FEMA, 1999, to promote ease of doing business and facilitate international trade.

To enhance digital payments’ convenience, the RBI plans to expand the e-mandate framework for recurring payments for services like Fastag and NCMC. The integration of UPI Lite into the e-mandate framework will introduce auto-replenishment features, eliminating the need for additional authentication.

In an effort to drive innovation, the RBI is launching the “HARBINGER 2024 – Innovation for Transformation” hackathon, focusing on combating financial frauds and fostering inclusivity for individuals with disabilities. These initiatives underscore the RBI’s commitment to fostering a conducive environment for financial transactions and promoting technological advancements in the financial sector.