The Reserve Bank of India (RBI), and the country’s biggest public and private banks are working together to create a smart system called the Digital Payment Intelligence Platform (DPIP). This new system is being made to detect and stop the growing problem of online payment fraud, which happens when someone tries to trick others or steal money during online payments. The RBI will supervise the system, and banks will help build and support it. The goal is to make online payments safer for everyone.
What is Digital Payment Intelligence Platform (DPIP)?
DPIP will be a high-tech system to detect and stop fraud during digital payments. It works in real-time, means the system works immediately, at the exact moment something is happening. It doesn’t wait until after the transaction is done to look for fraud.
So in this system, when a digital payment is made, like a security network, DPIP checks it right then and there, while the payment is still being processed. This helps catch and stop fraud before any money is actually lost.
Who is Developing DPIP?
The RBI is taking the lead in designing and building this advanced fraud-detection system. The RBI Innovation Hub (RBIH) is working on a sample version (called a prototype) of the DPIP system with the help of 5–10 banks. Both public sector banks (like SBI) and private banks (like HDFC, ICICI) are involved in this project. These banks are helping test and improve the system before it is launched for everyone.
Why DPIP is Necessary?
DPIP is necessary due to the rapid increase in digital payment fraud. Most common type of fraud is digital payment frauds, like using stolen credit cards, online banking scams, or fake payment links. Mostly private banks are hit by this types of frauds. These frauds are small but happen a lot.
Another type of fraud is loan related fraud when people or companies take big loans from banks and don’t repay them. These are fewer but involve large amounts of money. Public banks are mostly effected and lose the most money through loan frauds. Even if these frauds are less frequent, the amounts involved are much bigger.
In the last year (FY25), the total amount lost in bank frauds rose to ₹36,014 crore, almost three times more than the previous year.
Overall, India is building a powerful digital security system for banks to help stop online fraud before it happens. A high-level meeting was held recently with RBI and bank officials to finalize its structure. Since it’s a priority for the RBI and the government, the platform is expected to launch in the next few months.