Mumbai (Maharashtra) [India], To strengthen the security of digital payments and enhance the regulatory framework, the Reserve Bank of India (RBI) unveiled a series of proposals aimed at promoting innovation, inclusivity and efficiency in the financial sector. Did. Ecosystem.
These initiatives, announced by RBI Governor Shaktikanta Das, reflect the central bank's commitment to strengthening India's digital infrastructure and promoting an enabling environment for financial transactions.
One of the major announcements made by Governor Das pertains to the establishment of a Digital Payment Intelligence Platform. Leveraging advanced technologies, this platform aims to reduce the risks of payment fraud and enhance the security of digital transactions.According to the annual report released by the Reserve Bank of India (RBI) on May 30, the number of financial frauds reported by banks in fiscal year 2023 has increased by 166 percent year-on-year. Cases increased by 24 to 36,075.
This figure is a sharp contrast from the 13,564 cases recorded in the previous financial year, FY23. Despite the significant increase in the number of fraud cases, the total amount involved in these incidents has declined significantly.
The total amount involved in bank fraud declined by 46.7 per cent year-on-year to Rs 13,930 crore in the financial year 2023-24.In comparison, the amount recorded in FY23 was Rs 26,127 crore. The RBI has proposed to revise the bulk deposit limits for scheduled commercial banks (SCBs) and small finance banks (SFBs). The move, aimed at enhancing flexibility and keeping pace with changing market dynamics, underlines the RBI's commitment to promote an enabling environment for the banking sector.
At present, banks have the discretion to offer different interest rates on bulk deposits depending on their needs and asset-liability management (ALM) projections. The existing bulk deposit limit for SCBs (except Regional Rural Banks) and SFBs, set at 'single rupee fixed deposits of Rs 2 crore and above', was established in 2019.However, after a comprehensive review, RBI has proposed to modify this definition to 'single rupee fixed deposits of Rs 3 crore and above' for SCBs and SFBs. In addition to the proposed amendment for SCBs and SFBs, RBI It has also suggested defining the bulk deposit limit for Local Area Banks (LABs) as 'single rupee fixed deposits of Rs 1 crore and above', mirroring the norms applicable to Regional Rural Banks. (RRB).
RBI has also unveiled a plan to rationalize export and import rules under the Foreign Exchange Management Act (FEMA), 1999. This initiative, driven by the imperative of progressive liberalization and operational flexibility, underlines the RBI's commitment to promoting an environment conducive to international trade.Investment.
By eliminating redundancies, increasing clarity and reducing procedural complexities, RBI aims to promote ease of doing business for all stakeholders involved in cross-border trade. RBI aims to streamline and simplify operational processes related to export and import transactions. This aims to reduce administrative burden and increase efficiency for businesses and authorized dealer banks.
By aligning the regulations with international best practices and market realities, RBI seeks to create a conducive business-friendly environment to promote trade and investment growth. Simplified regulations will facilitate easier business transactions, encouraging businesses to explore new markets and expand their global footprint.
While promoting ease of doing business, RBI is committed to ensuring compliance with regulatory requirements and safeguarding the integrity of the financial system.The proposed rationalization will uphold the principles of transparency, accountability and risk management in cross-border transactions. As part of the process, the RBI plans to publish draft rules and instructions on its official website by the end of June 2024.
To enhance convenience and efficiency of digital payments, RBI has unveiled plans to expand the e-mandate framework to include recurring payments for Fastag, National Common Mobility Card (NCMC) and similar services.
The initiative, aimed at modernizing payment systems and promoting financial inclusion, underlines RBI's commitment to foster innovation and leverage technology to meet the evolving needs of consumers. The current UPI Lite service Allows customers to load up to Rs 2000/- in their UPI Lite wallet and transact up to Rs 500 from the wallet.To enhance seamless usage of UPI Lite for customers and in response to feedback from various stakeholders, it has been suggested to integrate UPI Lite into the e-mandate framework.
This integration will introduce an auto-replenishment feature for the UPI Lite wallet, which will automatically replenish the wallet balance when it falls below a predetermined limit set by the customer. Since the funds remain under the control of the customer (from their account to the wallet ), it is proposed to eliminate the need for additional authentication or pre-debit information. Relevant guidelines related to this proposal will be issued shortly.
RBI has launched a mission to promote innovation and transformation in the financial sector with the launch of its third edition of the global hackathon, “Harbinger 2024 – Innovation for Transformation”.It will have two primary themes: 'Zero Financial Fraud' and 'Disability Friendly.' Solutions will be sought aimed at strengthening the security of digital transactions with a special emphasis on identifying, preventing and combating financial fraud. Additionally, the focus will also be on promoting inclusivity for physically disabled persons. Will go. More information regarding the hackathon will be released soon.
These initiatives, announced by RBI Governor Shaktikanta Das, reflect the central bank's commitment to strengthening India's digital infrastructure and promoting an enabling environment for financial transactions.
One of the major announcements made by Governor Das pertains to the establishment of a Digital Payment Intelligence Platform. Leveraging advanced technologies, this platform aims to reduce the risks of payment fraud and enhance the security of digital transactions.According to the annual report released by the Reserve Bank of India (RBI) on May 30, the number of financial frauds reported by banks in fiscal year 2023 has increased by 166 percent year-on-year. Cases increased by 24 to 36,075.
This figure is a sharp contrast from the 13,564 cases recorded in the previous financial year, FY23. Despite the significant increase in the number of fraud cases, the total amount involved in these incidents has declined significantly.
The total amount involved in bank fraud declined by 46.7 per cent year-on-year to Rs 13,930 crore in the financial year 2023-24.In comparison, the amount recorded in FY23 was Rs 26,127 crore. The RBI has proposed to revise the bulk deposit limits for scheduled commercial banks (SCBs) and small finance banks (SFBs). The move, aimed at enhancing flexibility and keeping pace with changing market dynamics, underlines the RBI's commitment to promote an enabling environment for the banking sector.
At present, banks have the discretion to offer different interest rates on bulk deposits depending on their needs and asset-liability management (ALM) projections. The existing bulk deposit limit for SCBs (except Regional Rural Banks) and SFBs, set at 'single rupee fixed deposits of Rs 2 crore and above', was established in 2019.However, after a comprehensive review, RBI has proposed to modify this definition to 'single rupee fixed deposits of Rs 3 crore and above' for SCBs and SFBs. In addition to the proposed amendment for SCBs and SFBs, RBI It has also suggested defining the bulk deposit limit for Local Area Banks (LABs) as 'single rupee fixed deposits of Rs 1 crore and above', mirroring the norms applicable to Regional Rural Banks. (RRB).
RBI has also unveiled a plan to rationalize export and import rules under the Foreign Exchange Management Act (FEMA), 1999. This initiative, driven by the imperative of progressive liberalization and operational flexibility, underlines the RBI's commitment to promoting an environment conducive to international trade.Investment.
By eliminating redundancies, increasing clarity and reducing procedural complexities, RBI aims to promote ease of doing business for all stakeholders involved in cross-border trade. RBI aims to streamline and simplify operational processes related to export and import transactions. This aims to reduce administrative burden and increase efficiency for businesses and authorized dealer banks.
By aligning the regulations with international best practices and market realities, RBI seeks to create a conducive business-friendly environment to promote trade and investment growth. Simplified regulations will facilitate easier business transactions, encouraging businesses to explore new markets and expand their global footprint.
While promoting ease of doing business, RBI is committed to ensuring compliance with regulatory requirements and safeguarding the integrity of the financial system.The proposed rationalization will uphold the principles of transparency, accountability and risk management in cross-border transactions. As part of the process, the RBI plans to publish draft rules and instructions on its official website by the end of June 2024.
To enhance convenience and efficiency of digital payments, RBI has unveiled plans to expand the e-mandate framework to include recurring payments for Fastag, National Common Mobility Card (NCMC) and similar services.
The initiative, aimed at modernizing payment systems and promoting financial inclusion, underlines RBI's commitment to foster innovation and leverage technology to meet the evolving needs of consumers. The current UPI Lite service Allows customers to load up to Rs 2000/- in their UPI Lite wallet and transact up to Rs 500 from the wallet.To enhance seamless usage of UPI Lite for customers and in response to feedback from various stakeholders, it has been suggested to integrate UPI Lite into the e-mandate framework.
This integration will introduce an auto-replenishment feature for the UPI Lite wallet, which will automatically replenish the wallet balance when it falls below a predetermined limit set by the customer. Since the funds remain under the control of the customer (from their account to the wallet ), it is proposed to eliminate the need for additional authentication or pre-debit information. Relevant guidelines related to this proposal will be issued shortly.
RBI has launched a mission to promote innovation and transformation in the financial sector with the launch of its third edition of the global hackathon, “Harbinger 2024 – Innovation for Transformation”.It will have two primary themes: 'Zero Financial Fraud' and 'Disability Friendly.' Solutions will be sought aimed at strengthening the security of digital transactions with a special emphasis on identifying, preventing and combating financial fraud. Additionally, the focus will also be on promoting inclusivity for physically disabled persons. Will go. More information regarding the hackathon will be released soon.