Govt. Aims To Stop Digital Payment Frauds By Central Payment Fraud Registry: How Will It Work?

Digital payments have definitely made things easier, but fraudsters manipulating the situation is what makes us all wary of it. RBI has made a lot of efforts to keep them in check, from issuing  warnings against apps, directing e-wallets to refund full money in case of frauds

The constantly increasing number of frauds happening is truly alarming, and the Reserve Bank of India has taken a positive step towards curbing them by keeping a close watch. The RBI is planning to start a new register for tracking all fraud payments.

How will this fraud registry function? Find out right here!

RBI To Launch a Central Payment Fraud Registry

During the Monetary Policy press conference, which is held after every two months, Governor Shaktikanta Das has introduced some new regulatory policy measures. These measures have been put in place with the intention of improving the Payment and Settlement Systems.

This system was first suggested by the committee led by Nandan Nilekani.

He declared the launch of a central registry system, that will be called the ‘Central Payment Fraud Registry’. 

Das said, “In order to carry forward these efforts and ensure quick and systemic responses, it is proposed to facilitate the creation of a Central Payment Fraud Registry that will track these frauds. Payment system participants will be provided access to this registry for near-real time fraud monitoring.”

The ‘Central Payment Fraud Registry’: How Will It Work

This registry will be designed similar to the Central Fraud Registry which is already implemented. However, this platform is a searchable database for banks to discover scams attempted by creditors.

Das also said that all the data about frauds will be published so that customers will be aware of any risks that might surface. A detailed structure of this platform will be made ready by the end of October. 

What is even more interesting is that the tracking of frauds in digital payments on this platform will be done in real-time. Additionally, this system will help get a prompt response that will also be logical, and will keep customers updated about any fraudulent payment platforms or entities.

As of now, there is a system that banks use to record any frauds related to finance and banking to the Central Fraud Monitoring Cell of the Reserve Bank. In addition to this, the RBI also declared that starting from December, NEFT facility will be available for customers round the clock, that is, 24*7.  

Introducing such a modern system to track payment frauds and scams is quite a good initiative by the RBI, as this will help trace the whereabouts of the money. Also, making such news available to the public will definitely help spread awareness and keep citizens aware and alert.