RBI’s proposed digital payments intelligence platform will mitigate frauds, say experts

MUMBAI: The Reserve Bank’s proposal to establish a digital payments intelligence platform aims to combat fraud and enhance consumer trust. A committee led by A P Hota will assess the creation of this platform, leveraging advanced technologies to mitigate payment fraud risks.
The Reserve Bank’s proposal to set up a digital payments intelligence platform will help in mitigating frauds and boost consumer confidence, industry experts opined. On Friday, the RBI proposed to set up a ‘Digital Payments Intelligence Platform’, which will harness advanced technologies to mitigate payment fraud risks.
For this purpose, the central bank has constituted a committee under A P Hota, former MD and CEO of NPCI, to examine various aspects of setting up a digital public infrastructure for digital payments intelligence platform.
The committee is expected to give its recommendations within two months.
Commenting on the RBI’s proposal, Gaurav Jalan, Founder and CEO of mPokket, said the new regulatory measures as a significant advancement towards 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, said the RBI is proactively working towards fortifying digital trust within the financial ecosystem.
“This (proposed) platform will leverage advanced technologies like AI and machine learning to identify and mitigate fraud risks, ultimately leading to a safer digital payments environment,” he said.
This initiative, Ratan added, underscores the RBI’s commitment to prioritising customer protection, which is further evident in their consistent efforts to introduce guidelines surrounding data protection, cybersecurity, and KYC procedures.
Jyoti Bhandari, Founder and CEO of Lovak Capital, said that in order to protect consumers and bring in financial stability, the RBI has proposed to set up a committee to examine various aspects of the proposed platform.
On RBI’s decision to keep the interest rate unchanged, Sanjay Kumar Sinha, founder and managing director of Chaitanya Projects Consultancy, the infrastructure industry and the economy at large might have expected 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. Further, 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, said the status quo on interest rates is a positive development for the real estate sector.
This stability in interest rates will make homes more affordable for potential buyers, potentially elevating the existing upward trajectory of the housing market. Additionally, lower borrowing costs could encourage industrial investment, Gupta added.
“A reduction in unsold inventories, coupled with stable interest rates, could help sustain buyer demand,” Gupta added.
The RBI also upwardly revised the GDP growth projection for the current financial year to 7.2 per cent from its earlier estimate of 7 per cent.
The revised growth forecast of 7.2 per cent and inflation expectations at 4.5 per cent for 2024-25 indicate a stronger and more resilient economy, underpinned by positive trends in economic activity, and improved confidence among businesses and consumers, Rajesh Sharma, Managing Director of Capri Global Capital Ltd, said.
The Monetary Policy Committee, consisting of three RBI and an equal number of external members, kept the repo rate unchanged at 6.50 per cent for an eighth straight policy meeting.

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