Now Loading

RBI Establishes Committee to Combat Online Payment Fraud; Abhaya Hota to Lead

The Reserve Bank of India (RBI) has initiated the formation of a committee aimed at addressing the growing concern of online payment frauds. This move comes as part of the regulator’s proactive measures to safeguard digital transactions.

Headed by Abhaya Hota, a pivotal figure in India’s digital economy transformation, the committee will bring together industry experts to devise strategies to mitigate fraud risks in the digital payments landscape. Key representatives from prominent financial institutions and payment service providers will contribute to this initiative.

The committee’s mandate includes defining operational guidelines for data sharing among reporting entities such as banks and fintech firms. Additionally, it will establish protocols for identifying and reporting fraudulent transactions to the Central Payments Fraud Information Repository (CPFIR).

Moreover, the committee will explore the financial feasibility of the proposed platform and recommend measures to ensure its sustainability. Safeguarding customer data throughout the process will be a top priority, with the committee tasked to devise protective measures.

The establishment of this committee coincides with a surge in reported fraud cases, as highlighted in the RBI’s FY24 annual report. The regulator has observed a significant increase in fraud incidents compared to previous years, necessitating enhanced measures to counteract digital banking fraud.

In parallel efforts, the RBI is exploring advanced authentication mechanisms, including behavioral biometrics and location-based verification, to bolster security beyond conventional SMS-based OTPs. The report underscores that private sector banks have reported the highest number of fraud cases, while public sector banks have experienced the highest value of fraudulent transactions, primarily within the digital payments domain.

Upcoming Conferences