Mumbai, September 18 (Daily Kiran) : The Reserve Bank of India’s Deputy Governor, Shirish Chandra Murmu, revealed on Friday that the India Digital Payment Intelligence Corporation (IDPIC) is currently being tested with eight banks. The RBI is working to expedite its broader implementation.
Speaking at an event in Mumbai, Murmu stated, “This is already operational on a pilot basis in eight banks. We are trying to move it forward rapidly.” The RBI and the government have been taking various measures to strengthen the cybersecurity of digital payment systems and protect citizens from cyber financial fraud.
The IDPIC aims to create a mechanism for real-time fraud intelligence and alerts to be shared among banks and financial institutions. Advanced technologies such as artificial intelligence (AI), machine learning (ML), and big data analytics will be utilized for this purpose.
Murmu also highlighted the co-existence of cash and digital payments amid ongoing changes in the payment system. Despite the rapid growth of digital payments, the significance of cash has not entirely diminished. He noted that while cash usage as a transaction medium is gradually being replaced by digital methods, its role as a store of value remains intact, with no significant decline observed.
“We monitor the cash in circulation. As digital transactions increase, cash should decrease proportionately, but we aren’t seeing a significant drop,” he explained. The amount of cash held by households and individuals is linked to the country’s economic condition. However, the increasing formalization in the economy is rapidly promoting digital payments.
Murmu expressed optimism about the direction of digital transactions, stating, “The economy is becoming increasingly formalized. Therefore, we have high hopes. Digital payments are progressing very well.”
Discussing the pace of regulatory changes, he mentioned that the RBI has issued over 600 draft and final circulars in the past year. The central bank has also reclassified regulated entities into approximately 11 different categories, resulting in the issuance of various circulars tailored to these categories, leading to a higher overall count.
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