RBI's latest project will help curb digital payment frauds
What's the story
To combat the rising menace of digital payment frauds, the Reserve Bank of India (RBI) is working with leading public and private sector banks to create a Digital Payment Intelligence Platform (DPIP). The platform will be developed as a Digital Public Infrastructure under RBI's supervision. It aims to improve fraud risk management by enabling real-time intelligence sharing and collection, thus preventing fraudulent digital transactions.
Development progress
Structure of the proposed entity
The institutional structure of the entity will be created with the help of both public and private sector lenders. A high-level meeting was held earlier this month to finalize the platform's structure, attended by senior bank officials, RBI officials, and other stakeholders. The platform is expected to be operational in a few months as it is a top priority for both the government and RBI.
Operational features
Real-time data sharing to help prevent scams
Once operational, DPIP will collect and analyze data from multiple sources to identify possible threats and prevent fraudulent activities. The platform will enable real-time data sharing, helping to prevent scams and ensure secure transactions. The RBI Innovation Hub (RBIH) has been tasked with building a prototype of DPIP in consultation with 5-10 banks, leveraging advanced technologies to curb payment-related frauds.
Fraud surge
Bank frauds have surged significantly
In June last year, RBI formed a committee headed by A P Hota, ex-MD and CEO of NPCI, to examine various aspects of establishing this digital public infrastructure. According to the latest annual report of the RBI, bank frauds have surged significantly with the amount involved nearly tripling to ₹36,014 crore in FY25 from ₹12,230 crore in FY24. Public sector banks reported ₹25,667 crore worth of frauds as against ₹9,254 crore a year ago.