Digital Payments Intelligence Platform Under Development by RBI

The Reserve Bank of India (RBI) is working on a Digital Payments Intelligence Platform (DPIP) that will use artificial intelligence to identify risky transactions. Reports suggest that a prototype is being developed by the RBI’s innovation hub, and an entity will be created to manage the system once it becomes operational.

Data and Functionality

Deputy Governor T. Rabi Sankar said the system will collect information from multiple sources, including mule accounts, telecom records, and geographical data. The AI model will analyse this data and issue alerts before a transaction is processed. Based on the alert, either banks or customers can decide whether to continue with the payment.

Fraud Figures

In FY25, banks reported 13,516 cases of card and internet-related frauds, together worth ₹520 crore. A large share of these incidents involved private sector banks, mostly through digital channels like cards and internet banking. Public sector banks, in contrast, reported more frauds linked to loans.

Scale of Digital Payments

The digital payments ecosystem in India continues to grow, driven by platforms such as UPI, QR code payments, and mobile wallets. Data from the National Payments Corporation of India (NPCI) shows that UPI transactions alone crossed ₹14 trillion in September 2025. While the fraud rate remains low compared to the overall transaction volume, the scale of growth has raised concerns about security.

RBI’s Position

Executive Director Sanjay Malhotra said after the Monetary Policy Committee meeting that the prototype is still under development, and no timeline has been given for its launch. He pointed out that although fraud numbers are relatively small, preventive systems need to keep pace with the rapid rise in digital transactions.

Read more: RBI Introduces New Digital Payment Authentication Framework: Enhanced Risk-Based Checks Effective from April 2026

Conclusion

The Digital Payments Intelligence Platform is to reduce fraud risk in India’s payments network. Once rolled out, it will provide an additional safeguard for banks and users.

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