Banks and RBI are working on a New Platform to Stop Digital Payment Frauds

To tackle the growing problem of digital payment frauds, the Reserve Bank of India (RBI) has partnered with leading public and private sector banks to develop a new system called the Digital Payment Intelligence Platform (DPIP). This platform will serve as a Digital Public Infrastructure (DPI) and will be built under the guidance of the RBI.

Purpose of the Platform
The main aim of DPIP is to improve fraud prevention by enabling banks to share and receive real-time information on suspicious transactions. This will help prevent fraud before it takes place. Both public and private banks will work together to build this platform, as digital fraud affects all types of banks equally.

Planning and Meetings
A high-level meeting was recently held to finalise the structure of the platform. Senior officials from banks, RBI representatives, and other important stakeholders participated in this meeting. Since preventing digital fraud is a key concern for both the RBI and the central government, the platform is expected to go live within the next few months.

How DPIP Will Work
Once operational, DPIP will collect data from various sources, analyse it using advanced technologies, and identify risky or suspicious transactions. It will then alert banks in real-time, allowing them to stop fraud quickly. This system will make online transactions safer and more secure for the public.

Prototype Development
The Reserve Bank Innovation Hub (RBIH) has been asked to create a prototype of the DPIP. This is being done in consultation with 5 to 10 banks. The prototype will be tested and improved before the full platform is launched.

Why This Platform is Needed
Last year, the RBI created a committee led by A P Hota, former Managing Director and CEO of the National Payments Corporation of India (NPCI). The committee was asked to explore ways to create a reliable digital infrastructure to prevent fraud.

Recent Fraud Statistics
According to the RBI’s latest annual report, the total amount of bank frauds rose sharply to Rs 36,014 crore in the financial year 2024-25 (FY25), compared to Rs 12,230 crore in the previous year. Of this, Rs 25,667 crore worth of frauds were reported by public sector banks.

Types of Frauds
Most fraud cases in terms of numbers were related to digital payments, such as card and internet fraud. On the other hand, the largest amounts of money were lost in loan-related frauds. In private sector banks, digital payment frauds were more common, while public sector banks faced higher losses in their loan portfolios.

The DPIP aims to significantly reduce the number and scale of digital frauds by providing real-time alerts and better coordination between banks. This will strengthen the safety of India’s digital payment systems and protect both banks and customers from financial loss.