E X P E R T
F O R E C A S T interoperable mobile wallets and biometric payments .
E X P E R T
F O R E C A S T interoperable mobile wallets and biometric payments .
AI-enabled digital fraud detection
According to the Reserve Bank of India ( RBI ), domestic payment fraud increased by 70.64 % in six months , reaching Rs 2,604 crore by March 2024 , up from Rs 1,526 crore during the same period the previous year . The number of fraud cases also spiked , increasing to 15.51 lakh from 11.5 lakh in the prior six months .
As a result of the dynamic nature of threats in line with technology advancements in payments , traditional fraud detection systems that use rulebased frameworks to identify suspicious transactions are no longer effective . In the current context , prevention must be prioritised over detection and Artificial Intelligence ( AI ) could help address these issues a lot more efficiently . AI-enabled tools aim to offer proactive and predictive fraud detection tools against incidents like deepfake videos and sophisticated phishing scams . Financial institutions are turning to AI-powered fraud detection systems to analyse vast datasets in real-time , identifying and neutralising threats effectively . Security has become the foremost challenge for the payments industry as FinTech innovations are on the rise , which is adding to the volumes of transactions .
Real-Time Cross-Border Payments
The domestic payment ecosystem is witnessing a global transformation , driven by the international interoperability of UPI . In FY2024 , cross-border UPI transactions surged by 150 %, according to NPCI data , reflecting robust adoption and rising consumer confidence .
Looking ahead , the integration of central bank digital currencies ( CBDCs ) and stablecoins into real-time cross-border payment frameworks is set to revolutionise global financial transactions . These advancements promise to significantly reduce transaction costs , enhance processing speeds and provide seamless payment experiences , thereby catalysing international trade and economic growth .
Unified Lending Interface
The Unified Lending Interface ( ULI ) framework introduced by the Reserve Bank of India will emerge as a transformational tool to address the last mile gap in India ’ s lending landscape , much like the way UPI transformed the retail payments landscape . ULI will simplify access to credit by integrating various stakeholders in the lending ecosystem , such as banks , NBFCs , digital lending platforms and
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