Reserve Bank of India to create registry to track payment system frauds

Shaktikanta Das, Governor, Reserve Bank of India

India’s central bank has decided to create a Central Payment Fraud Registry to track payment system frauds on a near-real-time basis, Reserve Bank of India (RBI) Governor Shaktikanta Das, said on Wednesday.

The registry will provide participants aggregated fraud data to help customers understand risks related to such channels, Das said.

A detailed framework on the proposed registry would be released by the regulators in October.

RBI has proposed several other measures to raise “efficiency and soundness” of payment and settlement systems to improve consumer confidence in India, a fast-developing digital market.

RBI said it will permit all categories of billers (except prepaid recharges) who provide for recurring bill payments to participate in the Bharat Bill Payment System (BBPS), an interoperable platform for repetitive bill payments, on a voluntary basis.

This will not only digitize cash-based bill payments but also standardize bill payment experience for customers, facilitate centralized customer grievance redressal mechanism, among other things, the central bank said.

RBI has also decided to make the retail payment system National Electronic Funds Transfer available on a 24×7 basis from the end of this year.

Additionally, the central bank has also decided to cut the risk weight for consumer credit, including for personals loans, to 100 percent from 125 percent or higher. This, however, does not include credit card receivables, it said.

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