Mumbai: Reserve Bank of India (RBI) Governor Sanjay Malhotra has announced that the central bank will provide banks with a Digital Payment Intelligence Platform to help tackle fraud in the growing digital payments sector. He announced this while speaking at the FIBAC 2026 conference in Mumbai on Tuesday, August 11.
The initiative comes at a time when digital payments are growing rapidly across India. As more people use online banking, UPI and other digital payment services, fraudsters are also finding new ways to target customers and financial institutions.

RBI to Help Banks Detect Digital Payment Fraud

The new platform is expected to help banks identify and respond to suspicious activities in the digital payment system.Malhotra said that artificial intelligence (AI) and machine learning will become increasingly important in detecting new types of fraud.
As fraudsters also use advanced technology, banks will need stronger systems to identify unusual transactions and protect customers.

Banks Asked to Strengthen AI Governance

The RBI Governor asked banks to assess their current use of AI and create proper rules for managing the technology. He said smaller banks may not have the resources to develop their own AI systems and may need to depend on outside technology providers.
In such cases, protecting customer data and maintaining proper control over AI systems will be especially important.

Human Oversight Will Remain Important

Malhotra stressed that AI should not completely replace human decision-making in banking. Even when banks use advanced AI models, the final responsibility for important banking decisions should remain with the bank.
He also called for stronger AI governance, including maintaining a list of AI models, having a board-approved AI policy and conducting regular testing of AI systems.

RBI Highlights Banking and Credit Reforms

The RBI Governor also spoke about several banking reforms introduced over the past year. These measures include steps to improve customer service, make business processes easier and reduce the cost of financial services.
The RBI has also strengthened its PRAVAAH platform, including greater use of automation for applications. Changes have also been made to current account and working capital rules and other banking regulations.

AI to Support Credit and Financial Inclusion

Malhotra also highlighted the wider role of AI in banking and financial inclusion. He said India’s digital public infrastructure could provide a strong base for using AI in financial services.
The RBI is also working to improve the Unified Lending Interface (ULI) and the Account Aggregator framework. However, he warned that careless use of AI could create new barriers for some people instead of improving financial inclusion.

Conclusion

The RBI’s proposed Digital Payment Intelligence Platform could become an important tool in the fight against digital payment fraud. With online payments growing rapidly, stronger technology can help banks identify suspicious activity and protect customers.
At the same time, the RBI has stressed that AI must be used responsibly, with strong data protection, proper governance and human oversight remaining an important part of banking decisions.