The Reserve Bank of India has recently made an official announcement that they had laid out serious plans to set a Central Payment Fraud Registry to track frauds in the payment systems with Real Time Data. Payment system stakeholders will be provided access to this registry for near-real time fraud monitoring, the central bank said. The aggregated fraud data will be published to educate and spread awareness among customers on emerging risks and understanding risk management.
Currently, banks report all banking frauds directly to the Central Fraud Monitoring Cell of the Reserve Bank of India.
The Indian digital payments industry has seen a boom and robust growth over the last one decade and is set to be a achieve a new milestone of touching $6 billion industry by 2020.
“With the digital payment ecosystem making substantial progress in terms of growth of payment infrastructure as well as volume and value of digital payment transactions, fraud risk monitoring, and management by the stakeholders have assumed importance,” the RBI said.
The RBI’s Payment System Vision 2021 envisages a framework for collecting data on frauds in the payment systems. A detailed framework for setting up Central Payment Fraud Registry will be put in place by the end of October 2019, the RBI said.
Separately, the Reserve Bank of India also made official announcement that it will soon make National Electronic Funds Transfer (NEFT) payment system, which is operated by the central bank, available for customers on a 24×7 basis from December 2019. Currently, this NEFT facility for fund transfer is available from 8.00 am to 7.00 pm on all working days of the week (except 2nd and 4th Saturdays of the month).
Speaking after the Monetary Policy Committee’s announcement on Interest rate cuts which was scheduled today on August 7, Reserve Bank Governor Shaktikanta Das said measures taken by the government and the RBI “have to be seen together”.
The central bank cut the repo rate by 35 basis points (100 bps=1 percentage point) to 5.4 per cent on August 7 — to the lowest level in the last nine years.
This is the fourth cut straight in a row since Shaktikanta Das took over as RBI governor in December 2018 after surprising exit by former RBI governor Urijit Patel.
The move by the MPC comes against the backdrop of an economic slowdown, low inflation, global trade wars and geopolitical tensions.