RBI to Set Up Digital Payments Intelligence Platform to Combat Frauds

The Reserve Bank of India (RBI) plans to establish a Digital Payment Intelligence Platform to combat the growing threat of digital payment fraud.  This platform aims to provide network-level intelligence and facilitate real-time data sharing across the digital payments ecosystem.

This initiative is expected to enhance the security and reliability of digital payments, boost consumer confidence, and mitigate fraud risks by leveraging advanced technologies such as AI and machine learning to identify and prevent fraud.

The platform will help in mitigating frauds and reduce the growing instances of digital payment frauds, which have seen a sharp jump to a record ₹1,457 crore in the fiscal year ended March 2024.

NPST a listed digital banking and UPI payments technology provider in the NSE SME exchange has welcomed this move. “NPST welcomes the Reserve Bank of India's initiative to establish a Digital Payments Intelligence Platform (DPIP). This initiative is crucial for fostering a safer, more resilient digital payments ecosystem. As a higher proportion of per capita spending flows through digital channels, the centralized intelligence on fraudulent activities and bad actors provided by this platform will safeguard trust in the ecosystem and significantly reduce fraud losses”, said  Deepak Chand Thakur, Co-founder and CEO of NPST Ltd. 

What are the key features of the Digital Payments Intelligence Platform?

Some of the key features of the Digital Payments Intelligence Platform proposed by RBI include:

• The platform aims to provide network-level intelligence to enhance the security and reliability of digital payments.
• The platform will facilitate real-time data sharing across the digital payments ecosystem to combat fraud and ensure network-level security.
• It will leverage advanced technologies such as AI and machine learning to identify and mitigate fraud risks.
• The platform will enable real-time monitoring of digital payments, allowing for swift detection and prevention of fraudulent activities.
• The platform will prioritize customer protection by introducing guidelines surrounding data protection, cybersecurity, and KYC procedures.

Conclusion

The Reserve Bank of India's (RBI) Digital Payments Intelligence Platform is a significant step towards enhancing the security and reliability of digital payments in India. the platform aims to combat digital payment fraud and boost consumer confidence in digital transactions by providing network-level intelligence and facilitating real-time data sharing across the digital payments ecosystem. This initiative is expected to create a robust and secure digital payments ecosystem, ensuring the safety and trust of consumers in digital transactions.