RBI, Banks Team Up to Launch New Platform Against Digital Payment Frauds

The Reserve Bank of India (RBI), along with leading public and private sector banks, is working on a Digital Payment Intelligence Platform (DPIP) to tackle the rising number of digital payment-related frauds. As per news reports, the platform is being developed as a part of Digital Public Infrastructure (DPI) under RBI’s guidance.

Objective and Function

DPIP will focus on real-time data collection, sharing, and analysis to detect and prevent fraudulent transactions. It plans to create a central system where banks can flag suspicious activity quickly. The idea is to strengthen existing fraud detection systems by enabling coordination among banks.

Institutional Setup

A high-level meeting took place earlier this month to decide the structure of the proposed entity. It was attended by RBI officials, senior bank executives, and other stakeholders. The institutional framework will involve both public and private lenders, considering fraud is a sector-wide issue.

The Reserve Bank Innovation Hub (RBIH) has been tasked with building a prototype of the platform. This is being done in collaboration with 5-10 banks.

Committee Formation

This follows the formation of a committee in June 2023 by the RBI, chaired by A. P. Hota, former MD & CEO of National Payments Corporation of India (NPCI). The committee was set up to look into the framework required for establishing such a platform.

Fraud Statistics

As per RBI’s annual report, fraud cases in the banking sector saw a significant increase. The total value of frauds jumped to ₹36,014 crore in FY25, compared to ₹12,230 crore in FY24.

• Public sector banks reported ₹25,667 crore worth of fraud.
• Private sector banks saw a higher number of cases, mostly in card and internet transactions.
• Public sector banks experienced more fraud in their loan portfolios by value.

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Conclusion

The DPIP is being developed as a shared system to address digital fraud through coordinated efforts between the RBI and banks. The platform is expected to be operational in the coming months.

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