NPCI tests AI to catch payment fraud in real time
Technology
NPCI is testing a new AI tool with about a dozen banks to catch digital payment fraud as it happens.
The system watches transactions in real time, tracking stolen money before it can disappear into complicated networks.
The big idea? Stop scammers fast, so your money stays safe.
Federated learning helps protect customer data
This AI isn't just quick; it's smart about privacy, too.
By using federated learning, banks can check for shady activity without sharing your personal data around.
If the tool spots suspicious patterns, like rapid transfers through multiple accounts (also known as mule accounts), it alerts the bank or even freezes the transaction on the spot.
Officials say this will make India's payment systems much more secure for everyone.