RBI to set up central fraud registry

RBI to set up central fraud registry

Reuters file photo for representation

The Reserve Bank Wednesday announced the creation of a central payments fraud information registry, which could ensure a quick and systemic response in cases of financial frauds.

At present, there is a mechanism in place for banks to report all banking frauds to the Central Fraud Monitoring Cell of the Reserve Bank and the proposed dedicated registry will further enable this process.

The central bank said with the digital payment ecosystem making substantial progress in terms of growth of the payment infrastructure, as well as volume and value of digital payment transactions, fraud risk monitoring and management by the stakeholders, have assumed added importance.

"It has always been the endeavour of the RBI to improve the confidence of customers in the payment systems. To carry forward these efforts and ensure quick and systemic responses, it is proposed to facilitate the creation of a central payment fraud registry that will track these frauds," RBI said.

It also said payment system participants will be provided access to this registry for near-real-time fraud monitoring.

The aggregated fraud data will be published to educate customers on emerging risks. The central bank will issue a detailed framework in this regard by end-October.