The Reserve Bank of India (RBI) has rolled out its Digital Payments Intelligence Platform (DPIP) — an AI-driven system designed to detect and prevent payment frauds in real time. Developed by the RBI’s Innovation Hub, DPIP integrates data from banks, telecom operators, and cybercrime authorities to assign transaction risk scores and generate early alerts, marking a major step in India’s fight against digital payment fraud.
Core Development
DPIP will use artificial intelligence and machine learning to monitor transactions in real time.
The first phase includes a negative registry that identifies and flags suspicious entities using data from the Indian Cyber Crime Coordination Centre (I4C) and telecom firms.
In the next phase, the platform will assign risk scores and alert banks before potential fraudulent activity occurs.
Five banks have already joined the pilot, with over a dozen more to follow.
The system will allow banks to take preventive actions, such as debit freezes or enhanced verification, before fraud occurs.
Key Drivers / Issues
Surge in digital payment frauds—over 13,500 cases worth ₹520 crore were reported in FY25.
Rapid expansion of digital payments under UPI, net banking, and card channels.
Need for real-time data integration across institutions for quicker detection.
Part of RBI’s broader push for AI-driven regulatory oversight and consumer protection.
Stakeholder Impact
Banks gain a unified fraud detection mechanism, customers benefit from faster alerts, and regulators get access to consolidated intelligence for oversight. The platform could significantly reduce financial losses and boost trust in India’s digital ecosystem.
Industry & Policy Reactions
Industry experts praised DPIP as a “transformational reform” that aligns India with advanced digital economies. Fintech leaders expect it to create collaborative fraud prevention architecture across payment institutions.
Challenges Ahead
Ensuring data privacy and security within the multi-institutional framework.
Maintaining algorithmic transparency in AI-driven decision-making.
Onboarding smaller banks and payment operators with legacy systems.
Strategic Outlook
DPIP will redefine how India manages payment risks — moving from reactive investigation to proactive fraud prevention. It also underscores RBI’s commitment to trust, technology, and transparency in digital finance.
Why This Matters
With India leading the world in digital transactions, DPIP represents a milestone in secure payments infrastructure, strengthening user confidence and financial system integrity.
