The Reserve Bank of India (RBI) has strengthened its digital banking fraud prevention framework with revised 2017 guidelines on unauthorised electronic banking transactions, responding to rising online payment frauds and cyber threats. A dedicated compensation policy now covers small-value fraudulent transactions alongside real-time monitoring mandates for banks.
Central to this ecosystem is the Indian Digital Payment Intelligence Corporation (IDPIC), launched on October 16, 2025, as a Section 8 company using AI fraud detection, Machine Learning, and Big Data Analytics for digital payment security. RBI’s “MuleHunter.AI” platform, live across 26 banks—flags mule accounts and suspicious patterns to combat money laundering, with mandatory AI/ML transaction monitoring for all banks.
Complementing technology, RBI financial literacy initiatives include 2,421 Centres for Financial Literacy, annual Financial Literacy Week, “RBI Kehta Hai” campaigns, SEBI’s “SEBI vs SCAM” and the Saa₹thi app educating citizens on cyber safe banking. Minister Pankaj Chaudhary detailed these RBI digital payment security measures in the Rajya Sabha.
RBI Tightens Framework Against Unauthorised Digital Banking Transactions
