Recently, the RBI proposed establishing a Digital Payments Intelligence Platform.

RBI Proposes to Set Up a ‘Digital Payments Intelligence Platform’ to Mitigate Payment Fraud Risks

• The RBI has created a committee led by Shri A.P. Hota, former MD & CEO of NPCI.
• The committee will explore different aspects of setting up this digital public infrastructure.

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About Digital Payments Intelligence Platform

• Digital Payments Intelligence Platform is an initiative by the RBI
  • Objective: To enhance the security and reliability of digital payments, boost consumer confidence, and mitigate fraud risks.
  • Need of this platform: RBI wants to improve the existing e-mandate system because more people are using automatic recurring payments.
• Features 
• • Technology Integration: The platform will leverage advanced technologies to counteract fraud.
  • The e-mandate system will now cover regular payments but not always at fixed times.
    • For Example, This includes topping up Fastag balances for tolls or the National Common Mobility Card (NCMC) used in public transport.
• Promoting UPI Lite 
  • Integration Plan: RBI plans to include UPI Lite in the e-mandate system to make it more popular among users.

Benefits of Digital Payments Intelligence Platform

• Reduced Fraud and Increased Consumer Confidence:
  • Real-time data sharing: By enabling real-time data exchange across the network, the platform can quickly identify suspicious patterns and transactions. 
    • This allows authorities to take quicker action and prevent fraudulent activities before they occur.
  • Improved detection capabilities: Advanced analytics on the platform can help identify emerging fraud techniques and develop more robust countermeasures. 
    • This will make it harder for fraudsters to exploit loopholes in the system.
  • Increased consumer trust: With a more secure environment, consumers will be more confident using digital payments, leading to wider adoption and growth of the digital economy.
  • Automated Top-ups for Convenience
    • Benefit for Customers: People can set their Fastag and NCMC to refill automatically when their balance drops below a chosen level.
      • Ease of Use: This makes paying for travel and transportation simpler and faster.
• Enhanced Efficiency and Convenience:
  • Streamlined fraud resolution: Faster identification of fraudulent transactions will lead to quicker resolution for victims, minimizing inconvenience and financial loss.
  • Improved regulatory oversight: The platform can give regulators a centralized view of digital payments.
    • It allows them to develop more effective policies and regulations.
  • Innovation Potential: The platform can act as a foundation for future innovations in the digital payments space, fostering the development of new secure and convenient payment methods.

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