Aiming to timely detect frauds and take recovery actions, the Reserve Bank of India (RBI) plans to use data analytics. In vision document 2021 for payments and settlements systems in the e-payments space, the central bank said that data analytics could be utilised for identification of fraud and recovery actions including blocking irregular transaction before authorisation. It could also help in building trust in the system, the RBI document added.
The data would be used to influence regulatory decisions and cutting down on fraud, it added. The central bank has also proposed to make India a cashless economy by 2021 through safe, secure, accessible and affordable e-payment systems. Entry of more players and increased innovation may help in achieving a cash free economy, it also said in the document. The new proposal would be implemented between 2019 and 2021, the central bank also said in its vision document titled ‘Payment and Settlement Systems in India: Vision 2019 – 2021’.
As customers migrate to digital modes of payment, the costs incurred through the use of cash could be reduced, the RBI said. “Giving them multiple options is expected to make this experience exceptional, apart from furthering growth measurable in terms of digital payments turnover to GDP,” the RBI also said in the document. The central bank also said that it maintains a ‘no-compromise’ approach in terms of safety and security of the digital payment systems.
The number of transactions may surge more than four times to 8,707 crore in December 2021 compared to 2,069 in December 2018, the document stated. An annual growth of over 100 per cent is expected in the payment systems including UPI or IMPS, while National Electronic Funds Transfer (NEFT) may rise at 40 per cent up to December 2021, it noted.