Legitimate Transactions will be bygone through Data Analysis used by RBI

By ridhigrg |Email | May 18, 2019 | 8349 Views

The Reserve bank of India will promote the use of data analysis to identify cases of fraud and help instant response and recovery actions, such as blocking irregular transactions before payment authorization. This and a raft of measures are part of central banks vision 2019-2021 for payments and settlements systems in the e-payment space, which aims to deepen electronic payments and demand for cash is reduced by overtime.

The four-goal posts of vision 2021 with 36 specific action point over the 36-month time frame are expected to usher in ease for the customers and improve efficiency in e-payments and settlements. The measures include harmonizing the turnaround time for resolution of customers complaint. 

Various faces will be addressed by RBI with the objective of optimal timeline expected to result in customer delight and certainty of conclusion, said the vision document.

Recourse to technology-driven dispute redressal mechanism that is rule-based, customer friendly, transparent and involve minimum manual intervention will be advocated/encouraged/appreciated. The secret bank will also pursue offline payment solutions. 

Consumer behavior has been driving the growth of digital payment systems as more and more consumers are embracing mobile technology. Though mobile internet speed has risen, in large areas connectivity issues remains unsolved. 

Therefore, providing an option for off-line payments through mobile devices for furthering the adoption of digital payments shall be a focus area during this vision period, as said by the document. 

It will also work on drawing up a framework for collecting data on frauds in payment systems. 

To further strengthen the confidence in payment systems and minimize instances of fraud, there is a need to monitor the types of frauds that may be taking place in the various payments system. 

To this end, there is a need to share fraud related data for payment systems. Such data can be used analytically for differentiating fraudulent and legitimate transactions, oversight and supervision, and also for providing guidelines to entities for minimizing risks of similar frauds. 

This would also help in improving resilience and trust in the major system. The RBI would promote the use of such analytics to proactively identify instances and inspire for prediction of frauds to help instant record and recovery actions, such as blocking irregular transactions, before the payment authorizations. The fraud data will be used to influence regulatory decisions and for reducing the incidence and level of fraud in the payment eco-space. 

Source: HOB