NEW DELHI — In a major move to protect consumers in the rapidly expanding digital economy, the Reserve Bank of India (RBI) has proposed a revised regulatory framework to address unauthorized electronic banking transactions. The updated guidelines, currently open for public consultation, introduce a direct compensation mechanism for small-value fraud cases and significantly strengthen systemic safeguards against cyber threats.
The proposed framework builds upon the existing 2017 guidelines regarding customer liability, adapting to the modern realities of digital payments and the increasing sophistication of financial cybercrimes.
Next-Gen Fraud Detection: IDPIC and MuleHunter.AI To combat the rising tide of digital fraud, the central bank is deploying cutting-edge technology and establishing specialized regulatory bodies:
-
Indian Digital Payment Intelligence Corporation (IDPIC): Incorporated in October 2025 as a Section 8 company, the IDPIC will focus entirely on the real-time monitoring and analysis of digital payment fraud. It will heavily utilize Artificial Intelligence (AI), Machine Learning (ML), and Big Data Analytics to flag suspicious activity across the national ecosystem.
-
MuleHunter.AI: The RBI has officially deployed an advanced AI-driven solution specifically designed to identify “mule accounts”—bank accounts used by criminals for layering and diverting stolen funds. The system is already operational across 26 major banks and is slated for further expansion.
Additionally, the RBI has directed all banks to strictly fortify their internal systems by deploying real-time transaction monitoring tools to detect fraudulent networks before funds can be permanently diverted.
Scaling Up Financial Literacy Minister of State for Finance Pankaj Chaudhary, who shared these details in a written reply in the Rajya Sabha, emphasized that technological upgrades are being paired with massive public awareness campaigns.
Key literacy initiatives include:
-
Centre for Financial Literacy (CFL): The project has successfully established 2,421 centers across the country to promote community-based financial education.
-
National Campaigns: The ongoing “RBI Kehta Hai” multimedia initiative and SEBI’s “SEBI vs SCAM” campaign are working to educate the public about modern fraud risks.
-
Saa₹thi App: SEBI has also launched a dedicated mobile application to provide safe investment information and directly protect users from market scams.
