Why In News: Digital Payment Intelligence Platform
The Reserve Bank of India (RBI), along with public and private sector banks, is working on the development of a Digital Payment Intelligence Platform (DPIP). This platform will function as a Digital Public Infrastructure (DPI) to strengthen the security and trust in digital payments.
What is Digital Public Infrastructure (DPI)?
DPI refers to essential digital systems that are:
- Accessible
- Secure
- Interoperable
These systems support key public services. Examples include Aadhaar, Unified Payments Interface (UPI), and DigiLocker.
Objectives of DPIP
- To improve fraud risk management in the banking system.
- To enable real-time intelligence sharing among banks using advanced technologies.
- To boost coordination between banks in identifying and preventing fraudulent transactions.
Implementation Plan
- A committee has been formed under the chairmanship of Shri A.P. Hota to study the implementation of DPIP.
- The Reserve Bank Innovation Hub (RBIH) will build a prototype of DPIP in collaboration with 5–10 selected banks.
- Both private and public sector banks will be part of the consultation process.
Why is DPIP Needed?
- According to the RBI Annual Report, frauds in the banking sector have seen a sharp rise:
- ₹12,230 crore in FY24
- ₹36,014 crore in FY25
This increasing trend highlights the urgent need for a central intelligence system to combat banking fraud.
Other Measures Taken by RBI to Prevent Fraud
- Multi-factor authentication: Mandatory for all digital transactions to ensure security.
- Zero liability for customers: If the fraud is due to bank negligence or third-party breach, customers are not held responsible.
- bank.in and fin.in domain rules: Designed to help customers identify genuine banking websites and avoid phishing scams.
