Banks and RBI Collaborate on Real-Time Intelligence Platform to Tackle Rising Digital Payment Frauds

Entrepreneur

23-06-2025

Once operational, DPIP will collect, analyse, and disseminate actionable intelligence in real time, helping financial institutions flag and block suspicious transactions promptly
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In response to the alarming rise in digital payment frauds, India's public and private sector banks are joining forces under the Reserve Bank of India's (RBI) guidance to develop a Digital Payment Intelligence Platform (DPIP). Envisioned as a Digital Public Infrastructure (DPI), the platform aims to significantly enhance fraud risk management by enabling real-time data sharing and intelligence gathering to stop fraudulent transactions before they occur.
The urgency of the initiative is underscored by recent RBI data that reveals a sharp increase in reported bank frauds. In FY25, the total value of frauds surged nearly threefold to INR 36,014 crore from INR 12,230 crore in the previous fiscal year. Public sector banks accounted for INR 25,667 crore of the total, a significant jump from INR 9,254 crore a year earlier.
Sources familiar with the development said the platform's structure will be designed collaboratively by public and private banks, recognising that digital fraud is a shared challenge across the financial ecosystem. A high-level meeting was recently held, bringing together senior officials from the RBI, banking institutions, and other stakeholders to finalise the framework of the proposed entity.
The platform expected to go live within the next few months. Once operational, DPIP will collect, analyse, and disseminate actionable intelligence in real time, helping financial institutions flag and block suspicious transactions promptly.
In terms of volume, most frauds have been concentrated in digital payment modes like cards and online transactions, particularly within private sector banks. However, in terms of value, the majority of fraudulent activities in public sector banks have occurred in the loan and advances segment.
The Reserve Bank Innovation Hub (RBIH) has been tasked with building the prototype of the platform in collaboration with 5 to 10 partner banks. It will leverage advanced analytics and technologies to strengthen the banking sector's response to increasingly sophisticated cyber fraud tactics.
The initiative follows recommendations made by a committee set up in June last year, led by A P Hota, former MD & CEO of the National Payments Corporation of India (NPCI), which studied the feasibility and structure of such a digital infrastructure.