SBI, BOB: Digital payments are growing rapidly in India, but online fraud cases are also increasing. To address this problem, two of the country’s largest public sector banks, State Bank of India (SBI) and Bank of Baroda (BoB), are jointly developing a new artificial intelligence (AI) and machine learning (ML)-based real-time fraud detection system. This initiative aims to strengthen digital payment security and prevent fraud immediately.
What is the new initiative and its significance?
This system, called the Indian Digital Payment Intelligence Corporation (IDPIC), will be able to instantly identify and prevent suspicious account transactions. This company will be established as a non-profit organization under Section 8, with 12 public sector banks across the country as shareholders. SBI and Bank of Baroda have decided to invest ₹10 crore each in the first phase of this project. Other public sector banks will also participate.
The role of AI and machine learning
This system, being developed under IDPIC, will analyze transaction data to detect unusual patterns and prevent fraudulent activities immediately. Currently, the RBI’s MuleHunter AI technology is used, but the new system will use advanced algorithms such as machine learning and behavioral biometrics, making fraud detection and prevention more effective.
As digital transactions grow in India, the threat of cyber fraud is also increasing. Technology initiatives like IDPIC will not only reduce fraud but also improve risk management through shared information and collaboration across banks. This initiative will reassure customers about the safety of their funds and strengthen India’s digital payments ecosystem.