RBI to set up platform to curb payment frauds

The Reserve Bank of India (RBI) has proposed to set up a Digital Payments Intelligence Platform to mitigate payment frauds and protect customers from associated risks.

The banking regulator has constituted a committee to examine aspects of the digital public infrastructure for the intelligence platform.

“The payment ecosystem (banks, NPCI, card networks, payment aggregators, and payment apps) takes various measures on an ongoing basis to protect customers from such frauds. But there is a need for network-level intelligence and real-time data sharing across payment systems,” the RBI said in a statement.

The number of frauds in the banking sector increased over four times in the past five years to 36,075. In terms of the number of frauds, these have predominantly been witnessed through digital payments (card or internet). That number rose to 29,082 in FY2024 as compared to 2,677 in FY2020, data from RBI’s annual report shows.

Efforts to create an industry-wide database have so far been mired by legal and commercial issues related to sharing of personal information of fraudsters. We can hope that with the RBI stepping in, it will become possible to create such a database through which repeat offenders can be stopped.

The RBI has announced the inclusion of auto replenishment facility for Fastag, National Common Mobility Card (NCMC), and Unified Payments Interface (UPI) Lite wallets, under the e-mandate framework.

The facility to automatically replenish balances in these instruments will be triggered when the balance in Fastags, NCMCs or UPI Lite wallet falls below a threshold amount set by the customer.

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