The Reserve Bank of India (“RBI”) on August 07, 2019 in its Statement on Developmental and Regulatory Policies (Click here to view) proposed to create a Central Payment Fraud Registry (“Registry”) to monitor digital payments and to provide real-time track of complaint filed for digital payment frauds. Payment fraud data will be aggregated, all reported payment frauds will be stored in a single place i.e. the Registry. Every person would be able to log on to the Registry website for accessing data relating to payment frauds and to lodge a complaint in this regard. Also, the Registry will provide to the public, a periodic aggregated risk data associated with individual payment operators to educate people on emerging risks. At present, there is the Central Fraud Monitoring Cell of the RBI where aggrieved persons can file complaints of payment fraud. RBI will announce a detailed framework in this regard by October 2019. The idea of the Registry finds its origin in the RBI Payments Vision Document 2019-2021 released on March 15, 2019.
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This is a welcome initiative by the RBI keeping in mind the rise in digital payment transaction frauds. The data compilation on the number of frauds will serve as a good reference point for anyone interested in determining the number and frequency of digital payment transaction frauds. Additionally, it may also help RBI to identify frauds wherein involving the same person. Publication of data relating to payment frauds is also expected to greatly benefit the end users as with more information about digital payment frauds, the end users would have an option of choosing a platform that is the safest among the lot.
Disclaimer: This post has been prepared for informational purposes only. The information/or observations contained in this post does not constitute legal advice and should not be acted upon in any specific situation without seeking proper legal advice from a practicing attorney.