Over time, again and again, the Reserve Bank of India (RBI) has taken necessary steps to secure online money transactions. This time again, RBI has come to a latest decision to protect its consumers from online related crimes.
What RBI has decided?
The Reserve Bank of India (RBI) will soon launch the Digital Payments Intelligence Platform (DPIP), which will use AI to detect and prevent payment fraud in real time. In the initial phase, the RBI has created a negative registry, combining data from telecom companies and the Indian Cyber ​​Crime Coordination Center (I4C) to identify suspicious or fraudulent accounts and entities. The platform was developed by the RBI’s Innovation Hub and is currently being implemented in several banks.
In fiscal year 2024-25, banks reported 13,516 cases of card and internet fraud, involving an amount of ₹520 crore. Most of these incidents involved digital channels such as cards and internet banking. Private banks experienced the highest number of digital frauds, while public sector banks saw the majority of incidents related to loan accounts.
Instant risk factor
According to media report, five banks were added to the platform earlier this year. It is now being expanded to more than a dozen banks. In the next phase, the platform will generate an instant risk score for each transaction. If a transaction is found to be potentially fraudulent, banks will be able to take steps such as additional scrutiny, additional verification, or temporary debit blocks.
In this phase, banks will share fraud-related data with the platform in real-time, allowing AI models to raise immediate alerts and banks to alert the customer and take necessary action.RBI Deputy Governor T. Rabi Sankar explained during the October 1 monetary policy announcement that the platform will draw on information from multiple sources, such as mule accounts, telecom data, and geospatial information, and train an AI system on this data. This will generate alerts before a transaction occurs, allowing the bank or customer to decide whether to proceed.
