India's Real-Time Fraud Prevention System Launches with Eight Banks
India's central bank is enhancing digital payment security with the launch of the DPIP Smart Registry, now operational with eight banks. The initiative aims to create a shared intelligence platform to combat payment fraud.
India's Digital Payments Intelligence Platform (DPIP) Smart Registry went live on September 1 with eight participating banks, marking the initial operational phase of the Reserve Bank of India's (RBI) effort to establish a shared fraud intelligence layer for the nation's digital payments ecosystem.
The system is designed to help financial institutions identify potentially fraudulent accounts during the customer onboarding process. Initial use cases include new customer onboarding, profile changes, beneficiary additions, and scrubbing existing customer data against the registry to detect suspicious activity.
Expansion plans are aggressive, with an additional 25 banks expected to integrate within two months. The top 15 payment aggregators are targeted by the end of January, aiming to cover approximately 80% of transaction volume. This rollout addresses the current weakness where fraudsters can open new accounts at different institutions even after being blocked by one.
Phase two will introduce real-time transaction risk scoring, assessing the risk of each payment before completion based on historical account behavior. The system aims for proactive fraud prevention rather than post-facto detection. Safeguards are in place to prevent false positives and protect customer privacy, with banks sharing salted and hashed data instead of raw information.