A new centralised entity to tackle digital payment fraud

The Reserve Bank of India (RBI) has approved State Bank of India (SBI) and Bank of Baroda (BoB) to set up the Indian Digital Payment Intelligence Corporation (IDPIC) as a Section 8 (not-for-profit) company. The proposed entity will focus on real-time sharing of fraud-related data, advanced analytics, and identification of emerging fraud patterns across digital payment channels. All 12 Public Sector Banks (PSBs) are expected to participate in the platform, which will begin operations with an authorised capital of ₹500 crore.

IDPIC is envisaged as a centralised intelligence hub to complement existing payment infrastructures such as UPI, IMPS, cards and net banking, enabling banks to respond faster and more effectively to cyber fraud, phishing, mule accounts and coordinated digital scams.

Why it matters:

• Strengthens digital payment security: Centralised intelligence and real-time data sharing can significantly reduce response time to fraud, limiting financial losses for consumers and banks.
• Boosts trust in the digital ecosystem: As digital payments expand rapidly, especially through UPI, enhanced fraud prevention is critical for sustaining public confidence.
• Supports Digital Public Infrastructure (DPI): IDPIC reinforces India’s DPI approach—public-interest, interoperable institutions that underpin large-scale digital adoption.
• System-wide risk management: A shared platform allows pattern recognition across banks, addressing systemic vulnerabilities rather than isolated incidents.

Broader significance:
The move reflects a shift from bank-by-bank fraud management to a collaborative, ecosystem-level approach, aligning with RBI’s focus on financial stability, consumer protection and safe digital innovation. As India leads globally in real-time payments, institutions like IDPIC help ensure that scale is matched with security, making digital finance both inclusive and resilient.