Mumbai: The India Digital Payment Intelligence Corporation (IDPIC) is already operational on a pilot basis with eight banks, and the Reserve Bank of India (RBI) is working to expedite its rollout, RBI Deputy Governor Shirish Chandra Murmu said on Thursday.
Speaking to IANS on the sidelines of an event here, Murmu said, “It is already running on a pilot basis in eight banks. We are trying to expedite it.”
The government and the RBI have been taking several measures to strengthen the cyber security of digital payment transactions and protect citizens from cyber financial frauds.
The setting up of IDPIC, in consultation with the RBI, is aimed at creating a mechanism to share real-time fraud intelligence and alerts with banks and financial institutions by leveraging technologies such as Artificial Intelligence (AI), Machine Learning (ML) and Big Data Analytics.
Murmu also highlighted the changing dynamics of payments and the continued coexistence of cash and digital transactions. On the apparent paradox of rising digital payments alongside high cash holdings, he said that while cash used as a means of transaction is increasingly being replaced by digital modes, cash continues to retain its role as a store of value, where there has been no significant decline.
“We are looking at cash in circulation… when digital transaction peaks up, to that extent or correspondingly, it should come down. Which we don’t see much,” Murmu said.
He said the amount of cash held by households and individuals is also linked to the state of the economy, while increasing formalisation is supporting the growth of digital payments. “More and more formalization is happening… So we are very hopeful directionally. Digital is picking up very well,” he said.
On the pace of regulatory changes, Murmu said the RBI had issued more than 600 draft and final amendment circulars over the past year.
He explained that the central bank had reclassified regulated entities into around 11 categories, resulting in some circulars effectively being replicated across different categories.
(IANS)
