• Source:JND
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In order to improve the security and safety of digital payments and strengthen regulatory frameworks, the Reserve Bank of India (RBI) has introduced a series of proposals aimed at promoting innovation, inclusion, and efficiency in the financial ecosystem. These initiatives, announced by Reserve Bank of India Governor Shaktikanta Das, demonstrate the central bank's commitment to strengthening India's digital infrastructure and creating an enabling environment for financial transactions.

One of the major announcements made by Governor Das concerns the creation of a digital payments intelligence platform. This platform, which utilizes advanced technologies, aims to mitigate the risks of payment fraud and improve the security of digital transactions. According to the annual report released by the Reserve Bank of India (RBI) on May 30, there has been a significant increase in the number of financial frauds reported by banks, rising by 166 percent year-on-year in FY23.24 to reach 36,075 cases. This number is in stark contrast to the 13,564 cases reported in the previous fiscal year, FY23.

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Despite the significant increase in the number of fraud cases, there has been a significant decrease in the total amount involved in these incidents. The money linked to total bank fraud fell by 46.7 percent year-on-year in FY23-24, which is Rs 13,930 crore in total.
In FY23 the amount was Rs 26,127 crore.

The Reserve Bank of India has proposed reviewing the large deposit limits for scheduled commercial banks (SCBs) and small finance banks (SFBs). The move, which aims to increase flexibility and align with evolving market dynamics, underscores the Reserve Bank of India's commitment to creating an enabling environment for the banking sector.

Currently, banks have the discretion to offer differential interest rates on large deposits based on their requirements and Asset Liability Management (ALM) expectations. The current combined deposit limit for small and medium banks (excluding regional rural banks) and small micro banks, set at 'one rupee term deposit of Rs 2 lakh and above', was established in 2019.

(With Agencies Input)

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