RBI and Banks Unite to Launch Digital Payment Intelligence Platform (DPIP) to Combat Surging Digital Payment Frauds

New Delhi : In a landmark move to address the alarming surge in digital payment frauds, the Reserve Bank of India (RBI), in collaboration with major public and private sector banks, is spearheading the development of the Digital Payment Intelligence Platform (DPIP). Envisioned as a Digital Public Infrastructure (DPI), this AI-powered, real-time intelligence-sharing platform aims to revolutionize fraud risk management, curb cybercrime, and foster greater trust in India’s rapidly growing digital payments ecosystem. With frauds soaring to ₹36,014 crore in FY25, the urgency of this initiative cannot be overstated.

The Rising Tide of Digital Payment Frauds

According to the RBI’s latest Annual Report, bank frauds in India have witnessed an unprecedented surge, nearly tripling from ₹12,230 crore in FY24 to a staggering ₹36,014 crore in FY25. Public sector banks bore the brunt, reporting frauds worth ₹25,667 crore, a sharp rise from ₹9,254 crore the previous year. Private sector banks, on the other hand, saw a higher number of fraud cases, predominantly in card and internet transactions, while public sector banks faced significant losses in their loan portfolios (advances).

The broader cybercrime landscape paints an equally grim picture. In the first nine months of 2024 alone, India recorded over 1.7 million cybercrime complaints, resulting in financial losses exceeding ₹11,000 crore. These figures underscore the critical need for a robust, technology-driven solution to safeguard consumers and financial institutions from the escalating threat of digital fraud.

What is the Digital Payment Intelligence Platform (DPIP)?

The Digital Payment Intelligence Platform (DPIP) is a centralized, AI-enabled digital infrastructure designed to enhance fraud risk management by facilitating real-time data sharing, cross-institutional intelligence gathering, and advanced analytics. Positioned as a cornerstone of India’s evolving DPI framework—akin to Aadhaar and the Unified Payments Interface (UPI)—DPIP aims to proactively detect and block fraudulent transactions, identify scam trends, and strengthen coordination among banks, telecom firms, and regulators.

Key Objectives of DPIP

• Real-Time Intelligence Sharing: Enable banks to share and access real-time data on suspicious digital transactions, allowing for swift action to prevent fraud.
• Centralized Threat Detection: Collect and analyze transaction data from multiple sources to identify patterns, anomalies, and potential threats.
• Unified Fraud Management: Establish a pan-industry mechanism to prevent cross-platform and cross-institutional fraud attempts.
• Scalability Across Platforms: Integrate with existing payment systems like UPI, RuPay, and internet banking, as well as emerging payment modes.
• Enhanced Consumer Trust: Promote greater adoption of digital payments by ensuring a secure and reliable ecosystem.
• Data-Driven Regulation: Provide the RBI with sharper insights for future policy interventions and risk assessments.

Expected Benefits

Once operational, DPIP is expected to:

• Deliver real-time alerts and monitoring to prevent fraud at the source.
• Reduce customer losses by identifying fraud patterns early.
• Foster greater trust in India’s digital payments ecosystem.
• Enable scalable integration with various payment platforms.
• Support coordinated responses between banks, telecom firms, and regulators.

Development Progress and Institutional Framework

The development of DPIP is a collaborative effort involving both public and private sector banks, reflecting the recognition that “fraud is a common monster” affecting the entire financial ecosystem. The Reserve Bank Innovation Hub (RBIH) has been tasked with building a prototype of DPIP in consultation with 5 to 10 banks, leveraging advanced technologies to curb payment-related frauds.

High-Level Meeting and Stakeholder Collaboration

Earlier this month, a high-level meeting was convened to finalize the platform’s institutional structure. Attended by senior bank officials, RBI officials, and other stakeholders, the meeting laid the foundation for the platform’s architecture. The institutional framework will involve both public and private lenders, ensuring a unified approach to combating digital fraud.

Committee Formation

In June 2023, the RBI constituted a committee chaired by A.P. Hota, former MD and CEO of the National Payments Corporation of India (NPCI), to examine various aspects of establishing DPIP. The committee’s recommendations have guided the platform’s development, ensuring alignment with India’s DPI framework and cybersecurity priorities.

Timeline for Implementation

Given the urgency of the issue, sources indicate that DPIP is a top priority for both the RBI and the government. The platform is expected to become operational within the next few months, marking a significant milestone in India’s fight against digital payment frauds.

Other RBI Initiatives to Curb Bank Frauds

In addition to DPIP, the RBI has implemented several measures to strengthen cybersecurity and protect consumers:

• Multi-Factor Authentication: All banks are required to implement multi-factor authentication for electronic payments, adding an extra layer of security.
• Zero Liability for Customers: Customers face no liability for losses due to negligence by the bank or third-party breaches.
• bank.in and fin.in Domains: These domains help customers distinguish legitimate banking websites from fraudulent ones, reducing the risk of phishing scams.

Airtel’s Proposal to Enhance Fraud Prevention

Telecom giant Airtel has also entered the fray, proposing a shared repository of fraudulent financial domains to enable proactive blocking of malicious websites. In a letter to over 40 banks, the RBI, and the NPCI, Airtel’s Vice Chairman and Managing Director, Gopal Vittal, emphasized the need for closer collaboration to combat fraud. Vittal highlighted the vulnerabilities of over-the-top (OTT) messaging platforms, describing them as the “weakest link” due to insufficient regulatory oversight.

Key Elements of Airtel’s Proposal

• Public Awareness Campaigns: Educate consumers about online scams and safe digital practices.
• Technical Collaboration: Develop joint initiatives to block fraudulent domains and enhance fraud detection.
• Regulation of OTT Platforms: Address the risks posed by unregulated messaging platforms used by fraudsters.

The proposal has received positive responses from banks, NPCI, and telecom rivals Jio and Vodafone Idea. A joint industry-level initiative is now under discussion to bolster India’s defenses against telecom-based financial scams.

Limitations of Existing Systems

Vittal noted that systems like MuleHunter.ai, while useful, are reactive rather than preventive. He urged stakeholders to focus on stopping fraud at the initial point of contact, such as when users attempt to access harmful sites.

The Broader Context: India’s Digital Financial Adoption

India’s rapid adoption of digital financial services has been a double-edged sword. While platforms like UPI have transformed the payments landscape, they have also attracted sophisticated cybercriminals exploiting systemic loopholes. The DPIP initiative signals a shift toward ecosystem-level resilience, moving beyond isolated compliance measures to a coordinated, technology-driven defense.

Cybersecurity Challenges

• Evolving Threat Landscape: Cybercriminals are using advanced tactics, including phishing, malware, and social engineering, to target consumers.
• Cross-Platform Vulnerabilities: Fraudsters exploit gaps between banks, telecoms, and payment networks.
• Consumer Awareness Gaps: Many users remain unaware of safe digital practices, making them easy targets for scams.

The Role of Collaboration

The success of DPIP will depend on the commitment of all stakeholders—banks, telecom firms, regulators, and consumers—to work together. By pooling resources and expertise, these entities aim to create a safer digital payment environment, ultimately fostering greater trust in digital transactions.

Future Prospects for Digital Payment Security

The anticipated launch of DPIP in the coming months is poised to be a turning point in India’s fight against digital payment fraud. By leveraging advanced analytics, real-time data sharing, and cross-sector collaboration, the platform will enhance fraud detection and prevention, protecting both consumers and financial institutions.

Long-Term Impact

• Scalable Framework: DPIP’s DPI framework ensures scalability, allowing it to adapt to new payment modes and emerging threats.
• Policy Insights: The platform will provide the RBI with data-driven insights for future regulatory interventions.
• Consumer Empowerment: A secure digital ecosystem will encourage more Indians to embrace digital payments.

Challenges Ahead

While DPIP holds immense promise, its success will hinge on:

• Timely Implementation: Ensuring the platform goes live within the projected timeline.
• Stakeholder Coordination: Maintaining alignment among banks, telecoms, and regulators.
• Consumer Education: Raising awareness about safe digital practices to complement technological solutions.

Conclusion

The Digital Payment Intelligence Platform (DPIP) represents a bold and timely response to the escalating threat of digital payment frauds in India. By harnessing real-time intelligence, advanced analytics, and cross-sector collaboration, DPIP aims to create a secure and resilient digital payments ecosystem. With frauds soaring to ₹36,014 crore in FY25 and cybercrime complaints exceeding 1.7 million in 2024, the urgency of this initiative cannot be overstated. As the RBI, banks, and telecom firms unite to combat this “common monster,” DPIP is set to redefine fraud prevention, fostering greater trust and adoption of digital financial services in India.

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