The Reserve Bank of India (RBI) has proposed the establishment of a Digital Payments Intelligence Platform that will leverage advanced technologies to reduce payment fraud risks.
To advance this initiative, the RBI has formed a committee chaired by A.P. Hota, former MD & CEO of NPCI, to explore various aspects of developing a digital public infrastructure for the platform. The committee is expected to provide its recommendations within two months.
Domestic payment frauds surged by 70.64% to Rs 2,604 crore in the six-month period ending March 2024, up from Rs 1,526 crore in the same period the previous year. The number of fraud cases also increased to 15.51 lakh during the March 2024 period from 11.5 lakh in the prior six-month period, according to RBI data. “Regulatory measures like the establishment of a digital payments intelligence platform will utilize advanced technologies to mitigate fraud risks,” said SBI Chairman Dinesh Khara.
Bulk deposits limit raised: The Reserve Bank has proposed revising the definition of bulk deposits to 'single rupee term deposits of Rs 3 crore and above,' up from the current limit of Rs 2 crore and above for commercial banks (excluding RRBs) and small finance banks. Additionally, it has proposed setting the bulk deposit limit for local area banks at 'single rupee term deposits of Rs 1 crore and above,' aligning with regional rural banks (RRBs). Banks may offer differential interest rates on bulk deposits based on their requirements and Asset-Liability Management (ALM) projections. The bulk deposits limit was last raised to Rs 2 crore in 2019.
Automatic e-mandate: Under the e-mandate framework for recurring transactions, the RBI has introduced an automatic replenishment facility. This will trigger when the balance in Fastag or NCMC falls below a customer-set threshold. The current framework requires a pre-debit notification at least 24 hours before the actual debit, but the RBI proposes exempting this requirement for automatic replenishments under the e-mandate framework.
UPI Lite e-mandate: The RBI has decided to include UPI Lite within the e-mandate framework by introducing an auto-replenishment facility for the UPI Lite wallet. If the wallet balance falls below a customer-set threshold, it will automatically reload. Currently, the UPI Lite facility allows customers to load up to Rs 2000 into their wallet and make payments up to Rs 500 from it.
“Since the funds remain with the customer (funds move from their account to the wallet), the requirement for additional authentication or pre-debit notification is proposed to be removed,” stated the RBI.
Export and import norms to be revised: The Reserve Bank has decided to streamline existing guidelines on the export and import of goods and services in response to the evolving dynamics of global cross-border trade. This proposed rationalization aims to simplify operational procedures, promoting ease of doing business for all stakeholders.
