RBI to launch online payments intelligence platform to alert about financial fraud
Financial fraud cases have risen sharply in the country over the past few years. To address this problem, the Reserve Bank of India (RBI) is developing an online payments intelligence platform. This will enable real-time detection of financial frauds. These frauds cause significant losses to both individuals and firms.
RBI Governor Sanjay Malhotra stated at the Global Fintech Fest that this is part of an effort to strengthen the country’s digital public infrastructure and enhance the security and reliability of the fintech ecosystem. He explained that the RBI is developing a payments intelligence platform that will enable real-time detection and prevention of fraudulent transactions.
Praising the country’s fintech ecosystem, he noted that over 10,000 startups have joined the platform over the past decade, and over $40 billion has been invested in this segment. Strong public-private partnerships, government policies, and a large pool of tech talent are key factors behind the country’s success in digitalization. The central government plans to launch a digital currency guaranteed by the RBI. This will speed up payments. Central Bank Digital Currencies (CBDCs) have been introduced in some countries. The RBI began trials of digital currencies about three years ago. By March of this year, the circulation of this digital currency had increased to approximately ₹1,016 crore.
The RBI has also issued warnings regarding cryptocurrencies. The RBI believes that cryptocurrencies pose a significant risk to financial and monetary stability. Last year, former RBI Governor Shantikanta Das said, “I believe they should not be allowed to dominate the financial system. This poses a significant risk to financial stability. Cryptocurrencies also pose a risk to the banking system. This could create a situation where the central bank’s control over the supply of funds in the economy could be lost.” He said, “With the central bank having no control over the supply of funds in the economy, how can the liquidity available in the system be assessed?” Das said that cryptocurrencies are seen as a major threat. International understanding is needed because these transactions also take place outside the country.
