RBI to set up central fraud registry for digital payments

RBI to set up central fraud registry for digital payments
Photo Credit: Photo Credit: VCCircle
8 Aug, 2019

Digital payments service providers will now have to report payment frauds to a Central Payment Fraud Registry to be set up by the Reserve Bank of India (RBI). 

The announcement was made by RBI Governor Shaktikanta Das on Wednesday, bringing digital payment enterprises on par with banks that have to report frauds to the central fraud monitoring cell of RBI.

Details on the framework for the formation of the registry will be provided by RBI in October, an official statement said. The central bank will also publish aggregated fraud data collected by the registry for consumer education and will provide access to real-time fraud monitoring data to payment system partners. 

The setting up of a central body for consumer protection was a part of the report submitted by the Nandan Nilekani-led committee on digital payments ecosystem and was mentioned in the vision document 2021 released by RBI.

The Governor also said that new biller categories for Bharat Bill Payment System (BBPS) will be added to expand its scope. Consumers can use Bharat BillPay to transact for all recurring payments other than prepaid recharges. 

“Apart from the digitisation of cash-based bill payments, these segments would also benefit from the standardised bill payment experience for customers, centralised customer grievance redressal mechanism, prescribed customer convenience fee and the like,” Das said.

BBPS, which is driven by National Payments Council of India (NPCI), currently has only five categories of billers including Direct To Home, gas, electricity, water and telecom bill payments. The move to add other billers on BBPA is likely to take away the monopoly of a few digital wallets that might have access to a larger number of billers.

The regulator also announced on tap authorisation to entities to provide Bharat Bill payments, trade receivables discounting system and white label ATMs.