How SBI, Bank of Baroda plan to tackle fraudulent transactions
What's the story
The State Bank of India (SBI) and Bank of Baroda are leading the establishment of a digital payments intelligence platform. The new entity, named the Indian Digital Payment Intelligence Corporation (IDPIC), will be dedicated to detecting and preventing the fraudulent transactions across banks in real time. All public sector banks are likely to invest in this initiative.
Collaborative initiative
IDPIC to be registered as Section 8 company
IDPIC will be registered as a Section 8 company with an authorized capital of ₹500 crore and paid-up capital of ₹200 crore. Two senior executives from SBI and BoB are likely to join this firm as directors. The Reserve Bank of India (RBI) has approved the proposed company's articles of association, paving the way for its establishment.
Financial commitment
SBI commits initial funding for IDPIC establishment
SBI has committed an initial funding of ₹10 crore toward the establishment of IDPIC. Bank of Baroda is also expected to contribute the same amount. Almost all banks are likely to invest in this firm, taking up equity stakes as part of their commitment toward strengthening digital payment security in India.
Fraud prevention
IDPIC aims to address rising bank fraud concerns
The establishment of IDPIC comes as a major step to bolster risk management in the banking system. Bank frauds have been a major concern amid the rise of digital transactions in India. According to RBI data, the amount involved in bank frauds nearly tripled to ₹36,014 crore in FY25 from ₹12,230 crore in FY24.