RBI Proposes Digital Payments Intelligence Platform to Combat Fraud and Enhance Consumer Trust

RBI Proposes Digital Payments Intelligence Platform to Combat Fraud and Enhance Consumer Trust

New Delhi - The Reserve Bank of India (RBI) has proposed the establishment of a Digital Payments Intelligence Platform to combat payment fraud and enhance consumer confidence. This initiative, announced on Friday, will harness advanced technologies to mitigate payment fraud risks. A committee led by A P Hota, former MD and CEO of NPCI, has been constituted to assess various aspects of creating this digital public infrastructure. The committee is expected to provide its recommendations within two months.

Industry Experts Weigh In
Gaurav Jalan, Founder and CEO of mPokket, praised the RBI's proposal, highlighting it as a significant advancement in enhancing the security and reliability of digital payments. “By integrating advanced technologies to mitigate payment fraud risks, there's an opportunity to bolster public confidence in digital payment systems. This broader adoption and usage will empower India's youth by providing them with accessible and secure financial solutions,” Jalan said.

Ankit Ratan, Co-founder & CEO of Signzy, emphasized the proactive steps taken by the RBI to fortify digital trust within the financial ecosystem. “This platform will leverage advanced technologies like AI and machine learning to identify and mitigate fraud risks, ultimately leading to a safer digital payments environment,” Ratan noted. He added that this initiative underscores the RBI's commitment to prioritizing customer protection, as evidenced by their ongoing efforts to introduce guidelines on data protection, cybersecurity, and KYC procedures.

Jyoti Bhandari, Founder and CEO of Lovak Capital, commended the RBI's proposal to establish a committee to explore various facets of the proposed platform, aimed at protecting consumers and ensuring financial stability.

Economic Implications of Interest Rate Decisions
Sanjay Kumar Sinha, founder and managing director of Chaitanya Projects Consultancy, commented on the RBI's decision to maintain the current interest rate, suggesting that the infrastructure industry and the broader economy might have anticipated a rate cut. “This move will foster the confidence of infrastructure, EPC (engineering, procurement, and construction), and real estate companies, which are primarily dependent on debt. It indicates a stable economic environment, which can attract more private investment into infrastructure and continued support from the government,” Sinha said.

Anil Gupta, President of CREDAI NCR-Bhiwadi Neemrana, viewed the status quo on interest rates as a positive development for the real estate sector. He highlighted that stable interest rates will make homes more affordable for potential buyers, potentially boosting the housing market. Additionally, lower borrowing costs could encourage industrial investment. “A reduction in unsold inventories, coupled with stable interest rates, could help sustain buyer demand,” Gupta added.

Upward Revision of GDP Growth Projection
The RBI also revised the GDP growth projection for the current financial year to 7.2% from the earlier estimate of 7%. Rajesh Sharma, Managing Director of Capri Global Capital Ltd, remarked that the revised growth forecast of 7.2% and inflation expectations at 4.5% for 2024-25 indicate a stronger and more resilient economy. “These positive trends in economic activity and improved confidence among businesses and consumers underline a robust economic outlook,” Sharma said.

The Monetary Policy Committee, comprising three RBI officials and an equal number of external members, decided to keep the repo rate unchanged at 6.50% for the eighth consecutive policy meeting, reflecting a stable approach to monetary policy.

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