IDBI Bank & BCT Digital complete RBI’s regulatory sandbox testing

By Gloria Mathias

BCT Digital, a global digital transformation company delivering FinTech, RegTech and SustainTech solutions, has announced the successful regulatory sandbox testing and subsequent approval of BCT’s rt360 Real-Time Management System (RTMS) by the Reserve Bank of India (RBI).

This was achieved through a rigorous evaluation during the 4th Cohort of the Regulatory Sandbox, which was themed ‘Prevention and Mitigation of Financial Frauds’. The testing was conducted in collaboration with IDBI Bank, a partner of BCT.

Elaborating on this achievement, Jaya Vaidyanathan, CEO of BCT Digital, said, “We are thrilled to have successfully participated in the 4th Cohort of the RBI Regulatory Sandbox under the theme of ‘Prevention and Mitigation of Financial Frauds’. The approval of BCT’s rt360 Real Time Monitoring System by the RBI underscores our dedication to combating fraud within the banking sector. This achievement not only validates our efforts but also inspires us to expand into new products, market segments, and global geographies. We extend our gratitude to the RBI, IDBI Bank’s Managing Director, Deputy Managing Director, and the officials of the Information Technology and Credit Monitoring Departments for their partnership and support. This marks a significant advancement for the Indian banking ecosystem, moving towards proactive fraud prevention rather than reactive measures.”

Sunit Sarkar, Executive Director, IDBI Bank, noted, “The successful sandbox testing of BCT’s rt360 Real Time Monitoring System at IDBI Bank represents a significant milestone in our digital transformational journey. Collaborating closely with BCT and RBI officials, our dedicated teams from both the business and technology divisions played a pivotal role in this achievement. Accessing core banking data in real-time/near real-time through advanced technology platforms for testing in the sandbox environment underscores our commitment to leveraging innovation in safeguarding transactions and combating financial fraud effectively.”

The rt360 Real Time Monitoring System enables banks to monitor transactions in real-time or near real-time, where traditional methods struggle to keep pace with innovative fraud schemes and fund movement tracking challenges. While existing enterprise fraud risk management systems primarily address channel frauds impacting liability accounts, rt360 focuses on addressing credit frauds, a significant component of overall fraud incidents.

The objective of the regulatory sandbox was to detect suspicious transactions. At the same time, they occurred and alerted the bankers in real-time so that they could proactively take action to minimize the bank’s financial losses.