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RBI to bank on data analytics for timely fraud detection

The measures include harmonising the turnaround time for resolution of customer complaints.

TNN|
May 17, 2019, 10.49 AM IST
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he central bank will also push vigorously for adoption of digital payments through feature phones.
(This story originally appeared in on May 17, 2019)
MUMBAI: The Reserve Bank of India (RBI) will promote the use of data analytics to identify cases of fraud and help instant response and recovery actions, such as blocking irregular transactions before payment authorisation. This and a raft of measures are part of the central bank’s vision 2019-2021 for payments and settlements systems in the e-payments space, which aims to deepen electronic payments and over time reduce the demand for cash.

The four goal-posts of Vision 2021 with 36 specific action points over the 36-month time frame are expected to usher in ease for the customers and improve efficiency in e-payments and settlements. The measures include harmonising the turnaround time for resolution of customer complaints. “The RBI will be addressing the various facets in this regard, with the objective of optimal time lines expected to result in customer delight and certainty of conclusion,” said the vision document.

“Recourse to technology-driven dispute redressal mechanisms that are rulebased, transparent, customer-friendly and involve minimum (or no) manual intervention will be advocated/encouraged/appreciated,” it said. The central bank will also push vigorously for adoption of digital payments through feature phones. It will also pursue offline payment solutions.

“Consumer behaviour has been driving growth of digital payment systems as more and more consumers are embracing mobile technology. Though mobile internet speed has risen, connectivity issues remain unresolved in large areas. Therefore, providing an option of off-line payments through mobile devices for furthering the adoption of digital payments shall be a focus area during this vision period,” the document said.

It will also work on drawing up a framework for collecting data on frauds in payment systems.

“To further strengthen the confidence in payment systems and minimise instances of frauds, there is a need to monitor the types of frauds that may be taking place in various payment systems. To this end, there is a need to share fraud-related data for payment systems. Such data can be used analytically for differentiating fraudulent and legitimate transactions; oversight and supervision, and also for providing guidelines to entities for minimising risks of similar frauds,” according to the document.

“This would also help in improving resilience and trust in the system. The RBI would promote use of such analytics to proactively identify instances and aspire for prediction of frauds to help instant response and recovery actions, such as blocking irregular transactions, before the payment authorisation. The fraud data will be used to influence regulatory decisions and for reducing the incidence and level of frauds in the payments ecospace,” it added.

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